New Delhi, Jan 5 (KNN) According to the United Nations World Economic Situation and Prospects (WESP) 2024 report, India is forecasted to achieve a growth rate of 6.2 per cent in 2024, slightly below the 6.3 per cent estimate for 2023.

The report, launched on January 4, emphasizes India's robust domestic demand and impressive growth in the manufacturing and services sectors.

Despite concerns about erratic rainfall impacting agricultural output, the Indian economy is expected to remain strong, with a projected GDP increase of 6.6 per cent in 2025.

The UN report outlined potential risks, including global factors and India's vulnerability to climate change. The country's largely farm-based economy could face disruptions due to climate-related shocks, affecting food and fuel prices. Consumer price inflation is expected to decelerate, but the risk of a surge remains, influenced by commodity prices and climate events.

In the labor market, improvements were noted in India, with increased labor force participation and declining youth unemployment rates.

The Reserve Bank of India has cautiously managed financial market openings, implementing risk management systems.

On a global scale, the UN projects a slowdown in economic growth from an estimated 2.7 per cent in 2023 to 2.4 per cent in 2024. While 2023 exceeded expectations, persistent challenges include high-interest rates, escalating conflicts, sluggish international trade, and climate disasters.

(KNN Bureau)