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UNCTAD and IMF Forecasts for India’s GDP Growth in 2024

UNCTAD forecasts India’s GDP growth at 6.5% in 2024, a slight deceleration from the previous year’s 6.7%. This projection aligns with the IMF’s revised forecast, attributing growth to strong public investment and the services sector. The report highlights the trend of multinational corporations shifting manufacturing processes to India, which bolsters exports. Despite moderated commodity prices, restrained public consumption spending is offset by robust public investment, sustaining growth momentum.

UNCTAD’s Projection

UNCTAD anticipates India’s economy to grow by 6.5% in 2024, driven by strong public investment and services sector vitality. Multinational corporations’ increasing focus on India for manufacturing diversification is expected to positively impact exports.

IMF’s Analysis

The IMF raised India’s GDP growth projection for FY24-25 to 6.8%, attributing it to domestic demand. India’s impressive 8.2% growth between April-December 2023 prompted other international bodies to revise their growth estimates upward.

Economic Dynamics

The report suggests the Reserve Bank of India (RBI) will likely maintain interest rates in the near term. While restrained public consumption is countered by robust public investment, the outlook remains positive amidst evolving global trade dynamics.

UNCTAD and IMF Forecasts for India's GDP Growth in 2024_4.1