Indian economy projected to grow 6.5% in 2024: UNCTAD
MNCs extending their manufacturing processes will have a positive impact on Indian exports
almost ₹8 lakh crore, replacing Andhra Pradesh (AP), which had attracted the most investments in 2022-23. In FY24, AP attracted ₹1.06 lakh crore and was ranked ninth.
Gujarat retained its second position with its share of investments almost unchanged at about 12%, while Karnataka slid one place to the fourth rank over the past year. Among the big gainers was Odisha, which rose two places to third, despite an 11.4% drop in investment value (₹3.23 lakh crore).
Tamil Nadu’s rank surged from eighth to fth, as its share in new investments rose to 7.7%, from under 5% in 2022-23. The State attracted commitments of ₹2.71 lakh crore, an almost ₹1 lakh crore uptick year-on-year.
“We believe that the pace of new investment announcements might slow down in the rst quarter of this year due to the extended general election period,” said Shashikant Hegde, director and CEO at Projects Today. “However, with the new government assuming oce in June, the ow of fresh investment is expected to gain traction,” he added.
‘Timely execution key’
To keep the capex cycle ticking, the new government would not only need to usher in further reforms but also ensure that the ₹72.22 lakh crore of investments announced in the last two years saw timely execution, he stressed.
“Any delays in implementation of projects, especially those announced in critical sectors like green hydrogen, semiconductors, electric vehicles, transport infrastructure, hydel and solar power, could impede the growth trajectory of the Indian economy in the coming years,” he said.
India’s economy is projected to grow by 6.5% in 2024, according to a report by the UN, which noted that multinationals extending their manufacturing processes into the country to diversify their supply chains will have a positive impact on Indian exports.
The UN Trade and Development (UNCTAD), said in its report on Tuesday that India grew by 6.7% in 2023 and is expected to expand by 6.5% in 2024, continuing to be the fastest-growing major economy in the world. “The expansion in 2023 was driven by strong public investment outlays as well as the vitality of the services sector which beneted from robust local demand for consumer services and rm external demand for the country’s business services exports,” UNCTAD said.