India’s growth rate is predicted to reach 6.9% in 2024. There has been an increase in a forecast by 0.7%. The UN made the same observation because of steady private consumption and significant government investment.
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Inflation and Export Dynamics
India’s CPI (consumer price inflation) is expected to drop from 5.6% in 2023 to 4.5% in 2024. This range aligns with the Reserve Bank of India’s target range. It is also expected that merchandise exports may suffer a blow. However, significant growth is anticipated in pharmaceutical and chemical exports.
Labor Market and Fiscal Policies
The labour market condition of India has improved owing to the higher rates of participation and economic development. The government aims to maintain the same by lowering the fiscal deficit.
South Asian Economic Condition
The economic picture for South Asia is still favourable. The robust performance of India and the modest recoveries in Pakistan and Sri Lanka have been the reason for the same. The predicted growth of the regional GDP is 5.8% in 2024 and 5.7% in 2025, even with the obstacles of tight financial conditions.
Global Economic Progress
Global economic growth is now expected to reach 2.7% in 2024, up 0.3 percentage points from the projection made in January. The United States and developing economies like Brazil, India, and Russia have better economic prospects.
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Difficulties in Emerging Markets
Strong local and international demand benefits emerging nations like Mexico, India, and Indonesia. However, because of high borrowing costs, unstable political environments, and high inflation, many economies in Latin America and Africa are expanding slowly.
About Author
Manasi Gawali is an Economics graduate from St. Xavier’s College, Mumbai. She is passionate about economics and finance. She enjoys research, writing poems, music, and travel.
