According to the revised forecasts from the United Nations, India’s economy is expected to grow by 6.9% in 2024 and 6.6% in 2025. This growth is predicted to be driven by strong public investment and resilient private consumption, despite potential subdued external demand for merchandise exports. The World Economic Situation and Prospects report released on Thursday stated that pharmaceuticals and chemicals exports are also expected to grow significantly.

Despite a projected decline in consumer price inflation from 5.6% in 2023 to 4.5% in 2024, staying within the central bank’s target range of two to six percent, food prices remained high in the first quarter of 2024, particularly in countries like Bangladesh and India. However, other South Asian countries are also expected to see a decrease in inflation rates in 2024.

The labour market indicators in India have shown improvement due to strong growth and increased labour force participation, supported by a UN expert who described India’s economic growth as ‘very robust’. Additionally, India is attracting more foreign investment as Western companies are shifting their focus away from China, making it an alternative investment destination for many Western companies. This shift has further benefited India’s economy.