The Organisation for Economic Co-operation and Development (OECD) has revised India's growth outlook for 2024, projecting a growth rate of 6.2 percent in its latest interim economic outlook, released on Monday. This represents a slight increase from the previous estimate of 6.1 percent in the November outlook last year.
The report highlights that emerging-market economies, including India, have sustained solid growth despite tighter financial conditions. This resilience is attributed to improved macroeconomic policy frameworks, substantial investment in infrastructure, and consistent employment gains in many countries.
For the year 2025, the OECD maintains its growth forecast for India at 6.5 percent. The report notes that high-frequency activity indicators suggest a continuation of recent moderate growth.
On a global scale, the OECD indicates that the world economy is poised to perform better than anticipated a few months ago. An improved outlook in the United States is offsetting weaknesses in the euro zone. The report anticipates a slight easing in world economic growth from 3.1 percent in 2023 to 2.9 percent in the current year, an improvement from the 2.7 percent projected in the November outlook.
The report identifies clear signs of strong near-term momentum in India, relative weakness in Europe, and mild near-term growth in most other major economies.
This more favorable global economic outlook is seen as a positive sign for India, as it could potentially drive increased demand for Indian exports.
India's Finance Ministry has set expectations for over 7 percent growth in 2023-24, following robust performances with a 7.8 percent growth in the first quarter and a healthy 7.6 percent growth in the second quarter. The Reserve Bank of India (RBI) has also revised its growth forecast for the country to 7 percent, up from the earlier estimate of 6.5 percent, acknowledging the strong performance in the first half of the ongoing financial year.
(With Agency Inputs)
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