UN expects Indian economy to grow at 7.6 pct despite global growth concerns

India's economy is expected to grow at 7.4 per cent during 2018-19 and improve to 7.6 per cent in the next fiscal, said a UN report Wednesday. The United Nations' World Economic Situation and Prospects (WESP) 2019 report also expects India's gross domestic product (GDP) to expand by 7.4 per cent in 2020-21.

"Growth continues to be underpinned by robust private consumption, a more expansionary fiscal stance and benefits from previous reforms," said the report. It further said a more robust and sustained recovery of private investment would remain crucial to lifting medium-term growth.

Referring to the global economy, the report said it would continue to grow at a steady pace of around 3 per cent in 2019 and 2020 amid signs that growth has peaked. "However, a worrisome combination of development challenges could further undermine growth," it added.

UN Secretary-General Antonio Guterres cautioned that while global economic indicators remain largely favourable, "they do not tell the whole story". He further said the World Economic Situation and Prospects 2019 "raises concern" over the sustainability of global economic growth in the face of rising financial, social and environmental challenges.