Indian economy projected to grow 6.5% in 2024: UNCTAD
Context:
The UN report forecasts India’s economy to grow by 6.5% in 2024, maintaining its position as the fastest-growing major economy globally.
- This growth is attributed to factors such as strong public investment and robust demand for consumer and business services.
Relevance:
GS-03 (Economy)
Key highlights:
- Multinational corporations are extending their manufacturing processes into India to diversify their supply chains which is expected to have a positive impact on Indian exports, indicating confidence in India’s economic potential and attractiveness as a manufacturing hub.
- India’s economy grew by 6.7% in 2023, driven by factors such as public investment and strong demand for services.
- The UN report suggests that this growth momentum is expected to continue into 2024, highlighting the resilience and vitality of India’s economic landscape.
Economic Growth vs Economic Development:
- Economic Growth: Economic growth signifies the increase in the monetary value of goods and services produced within an economy over a specific period. It’s a quantitative measure reflecting heightened business transactions.
- Economic Development: Economic development pertains to the holistic improvement in the health, well-being, and educational standards of a nation’s populace, along with advancements in technology and production volume.
Key Differences:
- Definition: Economic growth focuses on monetary expansion, while economic development encompasses enhanced quality of life.
- Scope: Growth is narrower, focusing on economic aspects, whereas development is broader, incorporating various facets of human well-being.
- Term: Growth is short-term, development is long-term.
- Measurement: Growth is predominantly quantitative; development encompasses both quantitative and qualitative aspects.
- Applicability: Growth is often seen in developed economies, while development is crucial for developing nations.
- Government Support: Growth can be automatic or not, but development typically requires government intervention in policy formation.
- Changes Expected: Growth involves quantitative changes; development encompasses both quantitative and qualitative transformations.
- Examples: GDP, GNP signify growth, while HDI, per capita income represent development.
About the United Nations Conference on Trade and Development (UNCTAD):
- UNCTAD is one of the UN’s leading institution dealing with trade and development.
- It is a permanent intergovernmental body.
- It is headquartered in Geneva, Switzerland.
- It was established by the United Nations General Assembly in 1964.
- It conducts economic and trade analysis, fosters agreement, and provides technical aid to assist developing nations in utilizing trade, investment, finance, and technology for comprehensive and sustainable development. It also supports developing countries to access the benefits of a globalised economy in a more fair and effective manner.
- Reports published by the UNCTAD
- Trade and Development Report
- World Investment Report
- The Least Developed Countries Report
