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India’s GDP likely to expand by 6.5% in 2024: UNCTAD
Apr-18-2024

United Nations Conference on Trade and Development (UNCTAD) in its latest report has said that India’s gross domestic product (GDP) grew by 6.7 per cent in 2023 and is expected to expand by 6.5 per cent in 2024, continuing to be the fastest-growing major economy in the world. It noted that the expansion in 2023 was driven by strong public investment outlays as well as the vitality of the services sector which benefited from robust local demand for consumer services and firm external demand for the country's business services exports. It added that these factors are expected to continue to support growth in India in 2024. 

According to the report, an increasing trend of multinationals extending their manufacturing processes into India to diversify their supply chains will also have a positive impact on Indian exports, while moderating commodity prices will be beneficial to the country's import bill. It said India is benefiting from growing interest from multinationals, which see the country as an alternative manufacturing base in the context of developed economies' supply chain diversification strategies, making an apparent reference to China.  

The report further said that the Reserve Bank of India (RBI) is expected to keep interest rates constant in the near term, while restrained public consumption spending will be offset by strong public investment expenditures. 


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