New Delhi: India's economy is expected to experience growth of 6.7 percent in the calendar year 2024, primarily driven by resilient domestic demand, according to a UN report.

The report also suggested that higher interest rates and weaker external demand will continue to exert pressure on investment and exports in India for the foreseeable future.

The projections for India's economic growth in 2023 remain unchanged from earlier estimates, with a growth rate of 5.8 percent anticipated. The report highlights that inflation in India is expected to decelerate to 5.5 percent in 2023 due to moderating global commodity prices and reduced imported inflation resulting from a slower currency depreciation.

The UN report maintains that despite challenges faced by other South Asian nations, India's economic growth is expected to remain robust.

In fact, the report hails India as the fastest-growing major economy in the world, with a projected growth rate of 6.7 percent in 2024.

Hamid Rashid, Chief of the Global Economic Monitoring Branch at the UN Department of Economic and Social Affairs, emphasized that India continues to be a bright spot in the global economy, citing positive factors such as declining inflation.

While the report acknowledged India's strong economic performance, it cautions about external risks.

It suggested that if external financing conditions worsen significantly, India could face challenges, particularly in the realm of exports.

The mid-year assessment of the global economy presented in the report paints a relatively bleak picture, with limited prospects for a robust global economic recovery due to factors such as persistent inflation, rising interest rates, and uncertainties.

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