India will become the fastest growing economy in the world

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New Delhi: The Indian economy is expected to grow at 6.7 per cent in calendar year 2024 on the back of strong domestic demand. This has been estimated in a United Nations report. However, high interest rates and weak external demand will affect the country’s investment and exports this year, the report said.

A UN report titled ‘Global Economic Status and Prospects to Mid-2023’ states that India, the largest economy in the South Asian region, will grow at 5.8 per cent in 2023 and 6.7 per cent in 2024 (on a calendar year). Will grow from Aadhaar) will be entered. Strong domestic demand will help the Indian economy. However, high interest rates and weak external demand will continue to put pressure on the country’s investment and exports in 2023.

In 2023, the inflation rate in India will come down to 5.5 percent. Softening global commodity prices and easing currency depreciation should moderate ‘imported’ inflation. There has been no change in India’s economic growth projections in this assessment. This is in line with the predictions made in the World Economic Situation and Prospects-2023 report released in January this year.

A major report released in January said that India’s gross domestic product (GDP) growth rate is expected to decline to 5.8 per cent in 2023. Because high interest rates and slowdown in the global economy will affect the country’s investment and exports.

India’s economic growth will remain ‘strong’. However, the outlook for other South Asian countries is ‘more challenging’. Whereas India will be among the fastest growing major economies of the world.

India is a strong place. Outlook for India is unchanged from January and looks very positive. This includes inflation which has come down significantly.

India’s inflation is around 5.5 per cent while the regional average for South Asia is 11 per cent.

This means there is ample room for fiscal expansion and monetary policy to support domestic demand, although external risks remain. If the external finance position worsens further, India may face some challenges.

According to the report, the global economy is now projected to grow by 2.3 percent in 2023 (up 0.4 percentage points from the January forecast) and 2.5 percent in 2024 (down 0.2 percentage points). As far as the US is concerned, the report says that its economy is projected to grow by 1.1 per cent in 2023 due to better household spending.

At the same time, the European economy is expected to grow at a rate of 0.9 percent. This year China’s growth rate has been increased from 4.8 percent to 5.3 percent.