According to the UN economic report, India remains the fastest growing major economy: 10 points

India's economic growth is expected to reach 6.2 percent in 2024

New Delhi:
India remains the fastest-growing major economy and its growth is expected to reach 6.2 percent in 2024, according to the World Economic Situation and Prospects 2024 report released by the UN Department of Economic and Social Affairs.

Here's your 10-point cheat sheet to this big story

  1. Although India's growth is expected to reach 6.2 percent in 2024, it is slightly below the 6.3 percent estimated for 2023. Growth this year will be supported by robust domestic demand and strong growth in the manufacturing and services sectors, the UN report said.

  2. China faces headwinds from a struggling real estate sector, although government infrastructure investments are partially offsetting the lack of private investment. In contrast, India recorded strong investment performance in 2023, driven by government infrastructure projects and multinational investments.

  3. In the third quarter of 2023, the manufacturing purchasing managers' index – a leading indicator of economic activity – was in declining territory in all of the world's largest economies except India.

  4. Investment has been more resilient in developing countries than in developed economies. Investment in South Asia, particularly India, remained strong in 2023.

  5. India is benefiting from growing interest from multinational companies who view the country as an important alternative manufacturing location in the context of developed countries' supply chain diversification strategies.

  6. The income share of the top 10 percent rose in a number of large developing countries that received significant capital inflows, including South Africa and India.

  7. Climate change-related events continued to have a negative impact on the region in 2023. Droughts worsened significantly in July and August, affecting large parts of India, Nepal and Bangladesh, while Pakistan experienced above-average rainfall.

  8. In India, August was one of the driest months in four decades, affecting production of key staple crops in the hardest-hit areas.

  9. Amid ongoing risks and uncertainties, global gross domestic product (GDP) growth is expected to slow from an estimated 2.7 percent in 2023 to 2.4 percent in 2024.

  10. While the global economy avoided the worst-case scenario of a recession in 2023, a prolonged period of low growth is on the horizon. Growth is expected to improve moderately to 2.7 percent in 2025, but remain below the pre-pandemic trend growth rate of 3 percent.