When average growth of world is 2.6%, India will grow at 6.5%: UNCTAD

India is expected to maintain growth momentum at 6.5 per cent in 2024, per report released by the United Nations Conference on Trade and Development (UNCTAD).

India's economic growth surged to 6.7 per cent in 2023, showcasing resilience amid global economic challenges.

The robust growth in 2023 was attributed to several key factors, including strong public investment outlays and the dynamic performance of the services sector.

The services sector particularly thrived due to robust local demand for consumer services and robust external demand for the country's business services exports. These factors are anticipated to remain pillars of support for growth in the upcoming year.

An encouraging trend highlighted in the report is the increasing inclination of multinational corporations to extend their manufacturing processes into India.

This move aims to diversify their supply chains and is expected to have a positive impact on Indian exports. Additionally, moderating commodity prices are forecasted to benefit the country's import bill, further contributing to economic stability.

The Reserve Bank of India's monetary policy stance is expected to remain unchanged in the near term, with interest rates likely to be held constant.

Furthermore, restrained public consumption spending is anticipated to be offset by strong public investment expenditures, sustaining the growth trajectory.

Looking at the broader Asian region, economic growth is projected to reach 4.0 per cent in 2024, slightly lower than the 4.1 per cent recorded in 2023.

Despite this slight moderation, Asia continues to be a significant driver of global economic activity, with India's growth story standing as a beacon of hope amid broader economic uncertainties.