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UN forecasts 6.2% growth for India, property issues dampen China

The Business Guardian

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January 06, 2024

According to the United Nations World Economic Situation and Prospects (WESP) 2024 report, India witnessed robust investment performance in 2023, driven primarily by government infrastructure initiatives and multinational investments.

UN forecasts 6.2% growth for India, property issues dampen China

In contrast, China faces challenges due to a struggling property sector, impacting its investment outlook.

The report highlighted India's strong investment climate, attributing it to government-led infrastructure projects and increased interest from multinational corporations eyeing India as a crucial alternative manufacturing base. Foreign Direct Investment (FDI) flows to India surged by 10% in 2022, reaching USD 49 billion, making it the third-largest host country for greenfield projects and the second-largest for international project finance deals.

India's capital expenditure witnessed a significant increase of 43.1% year-over-year from April to September 2023, reflecting increased government spending on crucial sectors like roads, railways, and renewable energy projects. This elevated spending has also triggered a positive impact on private-sector investment.

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