OECD raises India’s growth outlook for 2024 to 6.2%

iNDICA NEW BUREAU–

The Organization for Economic Cooperation and Development (OECD) has raised India’s growth outlook for 2024 to 6.2 per cent in its latest interim economic outlook released on Monday. OECD, which represents the developed countries, in its earlier outlook in November last year had projected India’s growth at 6.1 per cent.

“The emerging-market economies have generally continued to grow at a solid pace, despite tighter financial conditions, reflecting the benefits of improved macroeconomic policy frameworks, strong investment in infrastructure in many countries, including India, and steady employment gains,” the outlook noted.

For 2025, OECD has kept its growth forecast for India unchanged at 6.5 per cent. The outlook observes that high-frequency activity indicators generally suggest a continuation of recent moderate growth. The global economy is on course to perform better this year than expected only a few months ago as an improved outlook in the United States offsets euro zone weakness, the OECD report states.

World economic growth is expected to ease from 3.1 per cent in 2023 to 2.9 per cent this year, better than the 2.7 per cent projected in the November outlook, according to the report.

“Across countries, there continues to be clear signs of strong near-term momentum in India, relative weakness in Europe, and mild near-term growth in most other major economies,” the outlook noted.

The better outlook for the global economy is a welcome sign as it also has the potential of creating a higher demand for Indian exports.

India’s Finance Ministry expects an over 7 per cent growth in 2023-24 after the second quarter growth came in at a healthy 7.6 per cent following on a 7.8 per cent growth in the first quarter.

The RBI has also raised its forecast for the country’s growth rate to 7 per cent from 6.5 per cent earlier, after the robust performance in the first half of the ongoing financial year.

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