Dr SK Tripathi
NEW DELHI: India continues to shine as the swiftest-expanding major economy, as underscored by the recently disclosed World Economic Situation and Prospects 2024 report by the UN Department of Economic and Social Affairs.
The report unveils India’s economic trajectory, forecasting a growth rate of 6.2 per cent in 2024, thereby solidifying its stature as the world’s most rapidly growing major economy.
It attributes this robust performance to a variety of factors, notably the steadfast domestic demand and substantial expansion within both the manufacturing and services sectors.
In stark contrast, India’s counterpart, China, grapples with economic adversity, with a trembling property sector leading to apprehension and doubt among private investors. To offset the shortcomings in private investments, the Chinese Government has shouldered a substantial burden, as underscored in the UN report.
In 2023, India exhibited resilient investment performance, propelled by government-led infrastructure projects and heightened multinational investments. According to the report, India outshines particularly in the Manufacturing Purchasing Managers’ Index, which maintained a positive trajectory throughout the third quarter of 2023.
Additionally, the report highlights a substantial increase in income shares within the top 10 per cent of large developing countries, including South Africa and India. This surge has been attributed economic vitality and significant capital inflows.
The report also cautions against the adverse ramifications of climate change-related events. Against the intricate tapestry of persistent risks and uncertainties, the global gross domestic product (GDP) growth is envisaged to decelerate from an estimated 2.7 per cent in 2023 to 2.4 per cent in 2024. While the global economy adeptly sidestepped a recession in 2023, anticipation lingers for a protracted phase of moderate growth.
The forecast hints at a gradual improvement, with growth projected to ameliorate to 2.7 per cent in 2025, albeit persistently trailing below the pre-pandemic trend growth rate of 3 per cent.
