In 2024 and 2025, India’s economy is predicted to grow by 6.9% and 6.6%, respectively, according to revised forecasts from the United Nations. The report indicates that robust public investment and resilient private consumption will be the primary drivers of this growth. Despite subdued external demand affecting merchandise export growth, pharmaceuticals and chemicals exports are expected to expand strongly.
Consumer price inflation in India is projected to decrease from 5.6% in 2023 to 4.5% in 2024, staying within the central bank’s target range of two to six percent. Other South Asian countries are also expected to see a decline in inflation rates in 2024. Although food prices remained high in the first quarter of 2024, mainly in Bangladesh and India.
Improvements in India’s labor market indicators have been noted thanks to strong growth and increased labor force participation, according to the report. A UN expert described India’s economic growth as ‘very robust’ and mentioned that the country is attracting more foreign investment as Western companies shift focus away from China. The increase in investments from Western sources into India is benefiting the country as an alternative investment destination for many companies.
