While most countries across the globe have entered a slow recession, the Indian economy is expected to grow by 6.7 per cent in the calendar year 2024, emerging as one of the few bright spots, a new UN report has revealed.&nbsp;

The World Economic Situation and Prospects&nbsp;as of mid-2023&nbsp;report released on Tuesday said India's economy is expected to expand by 5.8 per cent in 2023 and 6.7 per cent in 2024.&nbsp;

It, however, added that&nbsp;higher interest rates and weaker external demand will continue to weigh on investment and exports in 2023.&nbsp;

The report noted that while most central banks in the region hiked interest rates in early 2023 to tackle inflation and stabilise exchange rates, the Reserve Bank of India (RBI) applied the brakes after six consecutive hikes, accounting for a cumulative&nbsp;increase of 250 basis points since May last year.&nbsp;

"We have kept the policy rate unchanged, this decision was taken based on our assessment of the macroeconomic and financial conditions with reference to information available," said RBI Governor Shaktikanta Das at the time.&nbsp;

The growth projection for India is in line with the estimate made in&nbsp;World Economic Situation and Prospects 2023 report launched earlier this year.&nbsp;The January report said&nbsp;India's GDP is projected to grow to 5.8 per cent in 2023.&nbsp;

<a href="https://www.wionews.com/india-news/rbi-applies-brakes-on-repo-rate-hike-keeps-it-unchanged-at-65-579686">ALSO READ |&nbsp;RBI applies brakes on repo rate hike, keeps it unchanged at 6.5%</a>

<h2>India is the bright spot</h2>

Hamid Rashid, chief of the&nbsp;Global Economic Monitoring Branch, Economic Analysis and Policy Division, UN Department of Economic and Social Affairs, commenting on the findings of the report said India remained a 'bright' spot on the horizon.&nbsp;

“India remains a bright spot. Our projection for India hasn't changed since January and we see many positives, including the inflation has come down significantly. We are pretty confident with our forecast right now for the year,” he was quoted as saying by PTI.

<a href="https://www.wionews.com/videos/from-cars-to-homes-spending-in-india-booms-as-countries-battle-rising-inflation-526322">WATCH |&nbsp;From cars to homes, spending in India booms as other countries battle rising inflation</a>

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<a href="https://www.wionews.com/india-news/india-wpi-falls-into-negative-for-first-time-since-july-2020-govt-cites-high-base-effect-as-the-reason-592827#" id="jqclosemark">×</a>

<h2>Inflation rate based on WPI</h2>

Rashid may have been referring to the release of the Wholesale Price Index (WPI) which fell to a new&nbsp;three-year low of&nbsp;(-) 0.92 per cent in April. According to data released by the&nbsp;Ministry of Commerce and Industry on Monday, this is the first instance after July 2020 that the inflation rate based on WPI has slipped into negative territory.&nbsp;

"Decline in the rate of inflation in April 2023 is primarily contributed by fall in prices of basic metals, food products, mineral oils, textiles, non-food articles, chemical &amp; chemical products, rubber &amp; plastic products and paper &amp; paper products," the government noted.&nbsp;

According to the UN report, inflation in India is expected to decelerate to 5.5 per cent in 2023 as global commodity prices moderate.&nbsp;

<a href="https://www.wionews.com/india-news/india-wpi-falls-into-negative-for-first-time-since-july-2020-govt-cites-high-base-effect-as-the-reason-592827">ALSO READ |&nbsp;India: WPI falls into negative for first time since July 2020, govt cites high base effect as the reason</a>

While India grows rapidly,&nbsp;the world economy is expected to lag, despite a slight uptick from previous gloomy predictions.&nbsp;

"The world economy is now projected to grow by 2.3 per cent in 2023 (+0.4 percentage points from the January forecast) and 2.5 per cent in 2024 (-0.2 percentage points), a slight uptick in the global growth forecast for 2023," read the report.&nbsp;

(With inputs from agencies)

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While most countries across the globe have entered a slow recession, the Indian economy is expected to grow by 6.7 per cent in the calendar year 2024, emerging as one of the few bright spots, a new UN report has revealed.

While most countries across the globe have entered a slow recession, the Indian economy is expected to grow by 6.7 per cent in the calendar year 2024, emerging as one of the few bright spots, a new UN report has revealed. The World Economic Situation and Prospects as of mid-2023 report released on Tuesday said India's economy is expected to expand by 5.8 per cent in 2023 and 6.7 per cent in 2024. It, however, added that higher interest rates and weaker external demand will continue to weigh on investment and exports in 2023. The report noted that while most central banks in the region hiked interest rates in early 2023 to tackle inflation and stabilise exchange rates, the Reserve Bank of India (RBI) applied the brakes after six consecutive hikes, accounting for a cumulative increase of 250 basis points since May last year. "We have kept the policy rate unchanged, this decision was taken based on our assessment of the macroeconomic and financial conditions with reference to information available," said RBI Governor Shaktikanta Das at the time. The growth projection for India is in line with the estimate made in World Economic Situation and Prospects 2023 report launched earlier this year. The January report said India's GDP is projected to grow to 5.8 per cent in 2023. ALSO READ | RBI applies brakes on repo rate hike, keeps it unchanged at 6.5% India is the bright spot Hamid Rashid, chief of the Global Economic Monitoring Branch, Economic Analysis and Policy Division, UN Department of Economic and Social Affairs, commenting on the findings of the report said India remained a 'bright' spot on the horizon. “India remains a bright spot. Our projection for India hasn't changed since January and we see many positives, including the inflation has come down significantly. We are pretty confident with our forecast right now for the year,” he was quoted as saying by PTI. WATCH | From cars to homes, spending in India booms as other countries battle rising inflation × Inflation rate based on WPI Rashid may have been referring to the release of the Wholesale Price Index (WPI) which fell to a new three-year low of (-) 0.92 per cent in April. According to data released by the Ministry of Commerce and Industry on Monday, this is the first instance after July 2020 that the inflation rate based on WPI has slipped into negative territory. "Decline in the rate of inflation in April 2023 is primarily contributed by fall in prices of basic metals, food products, mineral oils, textiles, non-food articles, chemical & chemical products, rubber & plastic products and paper & paper products," the government noted. According to the UN report, inflation in India is expected to decelerate to 5.5 per cent in 2023 as global commodity prices moderate. ALSO READ | India: WPI falls into negative for first time since July 2020, govt cites high base effect as the reason While India grows rapidly, the world economy is expected to lag, despite a slight uptick from previous gloomy predictions. "The world economy is now projected to grow by 2.3 per cent in 2023 (+0.4 percentage points from the January forecast) and 2.5 per cent in 2024 (-0.2 percentage points), a slight uptick in the global growth forecast for 2023," read the report. (With inputs from agencies) WATCH WION LIVE HERE:

India to grow 6.7% in 2024, remain one of the few 'bright spots': UN report

India's macroeconomic fundamentals are much stronger, and the country is all set for robust growth on the back of structural reforms, the government's capex push and rapid vaccination, India's Chief Economic Advisor KV&nbsp;Subramanian said on Tuesday.

Briefing media on the growth number, he said the GDP data for the first quarter reaffirms the government's prediction of an imminent V-shaped recovery made last year.

India's economic growth surged to 20.1 per cent in the April-June quarter of this fiscal, helped by a low base in the year-ago period, amid a devastating second wave of the COVID-19.

The gross domestic product (GDP) had contracted by 24.4 per cent in the corresponding April-June quarter of 2020-21, according to data released by the National Statistical Office (NSO) on Tuesday.

On the inflation, he said it has witnessed a moderation in July compared to the previous month.

"Our expectation is that the inflation in the next few months should be within that range, between 5-6 per cent, but less than 6 per cent" despite hardening global commodity prices, he said.

India's macroeconomic fundamentals are much stronger, and the country is all set for robust growth on the back of structural reforms, the government's capex push and rapid vaccination, India's Chief Economic Advisor KV Subramanian said on Tuesday.

India's macroeconomic fundamentals are much stronger, and the country is all set for robust growth on the back of structural reforms, the government's capex push and rapid vaccination, India's Chief Economic Advisor KV Subramanian said on Tuesday. Briefing media on the growth number, he said the GDP data for the first quarter reaffirms the government's prediction of an imminent V-shaped recovery made last year. India's economic growth surged to 20.1 per cent in the April-June quarter of this fiscal, helped by a low base in the year-ago period, amid a devastating second wave of the COVID-19. The gross domestic product (GDP) had contracted by 24.4 per cent in the corresponding April-June quarter of 2020-21, according to data released by the National Statistical Office (NSO) on Tuesday. On the inflation, he said it has witnessed a moderation in July compared to the previous month. "Our expectation is that the inflation in the next few months should be within that range, between 5-6 per cent, but less than 6 per cent" despite hardening global commodity prices, he said.

India poised for stronger growth on structural reforms, govt capex push, says chief economic advisor

Reserve Bank of India on Friday decided to keep benchmark interest rate unchanged at 4% but maintained an accommodative stance, implying more rate cuts in the future if the need arises to support the economy hit by the COVID-19 crisis.

The monetary policy committee also decided to retain an accommodative policy stance at least for the current financial year and into the next year to revive growth on a durable basis, Governor Shaktikanta Das said in an online briefing.

The key lending rate of the RBI or the repo rate was left unchanged at 4% while the reverse repo rate or the key borrowing rate stayed at 3.35%.

Governor Das also said that the real GDP growth for 2021 is projected at -7.5%.

The central bank has slashed the repo rate by 115 basis points (bps) since late March to cushion the shock from the coronavirus crisis and sweeping lockdowns to check its spread.

Economists and market participants are closely awaiting commentary from the RBI about liquidity conditions.&nbsp;

(With inputs from agencies)

Reserve Bank of India on Friday decided to keep benchmark interest rate unchanged at 4% but maintained an accommodative stance, implying more rate cuts in the future if the need arises to support the economy hit by the COVID-19 crisis.

Reserve Bank of India on Friday decided to keep benchmark interest rate unchanged at 4% but maintained an accommodative stance, implying more rate cuts in the future if the need arises to support the economy hit by the COVID-19 crisis. The monetary policy committee also decided to retain an accommodative policy stance at least for the current financial year and into the next year to revive growth on a durable basis, Governor Shaktikanta Das said in an online briefing. The key lending rate of the RBI or the repo rate was left unchanged at 4% while the reverse repo rate or the key borrowing rate stayed at 3.35%. Governor Das also said that the real GDP growth for 2021 is projected at -7.5%. The central bank has slashed the repo rate by 115 basis points (bps) since late March to cushion the shock from the coronavirus crisis and sweeping lockdowns to check its spread. Economists and market participants are closely awaiting commentary from the RBI about liquidity conditions. (With inputs from agencies)

RBI keeps repo rate unchanged at 4%, GDP forecast upgraded

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India to grow 6.7% in 2024, remain one of the few 'bright spots': UN report

India poised for stronger growth on structural reforms, govt capex push, says chief economic advisor

RBI keeps repo rate unchanged at 4%, GDP forecast upgraded