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Manufacturing Shift To Accelerate India's Economic Growth To 6.5% In 2024: UNCTAD

Updated: Apr 18, 2024 02:42:43pm

Manufacturing Shift To Accelerate India's Economic Growth To 6.5% In 2024: UNCTAD

New Delhi, Apr 18 (KNN) According to reports from the United Nations, India's remarkable economic growth trajectory is poised to persist, with projections indicating a 6.5 per cent expansion in 2024, solidifying India's position as the fastest-growing major economy worldwide.

The UN Conference on Trade and Development (UNCTAD) report, released on Tuesday, underscores the increasing trend of multinational corporations extending their manufacturing operations to India, capitalising on the country's strategic position as an alternative manufacturing base.

This diversification of supply chains is expected to positively impact Indian exports, while moderating commodity prices are anticipated to benefit the nation's import bill.

Notably, the report highlights India's robust 6.7 per cent growth in 2023, attributing this impressive performance to robust public investment and the resilience of the services sector, which benefited from strong domestic demand and flourishing business services exports.

The Reserve Bank of India, as per the report, is anticipated to maintain a steady interest rate stance in the near term, while restrained public consumption spending will be counterbalanced by robust public investment expenditures, fostering sustained economic growth.

Amidst global economic challenges, India stands as a beacon of resilience and opportunity. The International Monetary Fund's latest World Economic Outlook echoes this sentiment, projecting India's growth to remain strong at 6.8 per cent in 2024 and 6.5 per cent in 2025, buoyed by the strength of domestic demand and a rising working-age population.

As multinational corporations increasingly recognise India's potential as a manufacturing powerhouse, the nation's economic prospects continue to shine, solidifying its position as a driving force in the global economy.

(KNN Bureau)


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