As per the latest UN report, India has become a major country for investments from Western countries because of its growing GDP. India’s GDP has grown to 6.9 per cent in 2024 from the 6.2 per cent that was projected in January. It is indicative that this GDP growth was driven mainly by robust public investments and solid private consumption.
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UN Report on India’s robust GDP growth
Mr Hamid Rashid, Chief of the Global Economic Monitoring Branch, Economic Analysis and Policy Division, United Nations Department of Economic and Social Affairs (UN DESA), has said, “India is also benefiting from more investments coming into India from other Western sources as less and less foreign investment is going into China, western investment is going into China. India has become an alternative investment source or destination for many Western companies. I think that is also benefiting India.”
The report also states that the CPI (Consumer Price Index) or consumer price inflation is set to decrease from 5.6 per cent in 2023 to 4.5 per cent in 2024. Rashid noted that India’s fiscal position has become less constrained than other countries. This decrease was only made possible through robust support from the country’s monetary and fiscal policies to stimulate growth.
As per the UN report, there is a pressing external demand for merchandise export growth. However, pharmaceutical and chemical exports are expected to thrive.
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Improvements in India’s FDI
Indicators of the Indian Labour Market have shown improvement because of the strong economic growth and greater labour force participation. The Indian government is dedicated to reducing the fiscal deficit and boosting capital investment.
“Given all these factors, this improvement is a very reasonable modest upward revision that we have done, given that what we see is happening in the Indian economy right now”, Mr Rashid added.
Mr Hamid Rashid, Chief of UN DESA, discussed India’s FDI position while addressing reporters on the mid-year update of the World Economic Situation and Prospects 2024.
About Author
This article is written by Janvi Singh, a seasoned content writer and aspiring business journalist. She holds a postgraduate degree in media studies, and although she has gained experience in writing for various digital platforms, she has a keen interest in writing business news.
