Defying projections, the global economy weathered challenges and remained stable in 2023. World Bank has pegged India’s growth at 6.4 per cent for FY24. What are the likely key trendsfor 2024?
Climate conversations: 2024 is set see erratic andabrupt weather patterns.Renewable energy sector willplay a vital role here offeringviable solutions. Green hydrogen, produced from renewable sources, is expected to become increasingly vital. Weanticipate major advancementsin electrolyser technology, which will significantly improve efficiency and reduce the cost of green hydrogen production. The growth of renewable energyin 2024 will be closely tied to advancements in energy storage technologies.
From 2024 onwards, the focus onfoundational literacy andnumeracy will gain momentum,with an emphasis oncompetency-based learning. There will also be a need for aparadigm shift towards a more inclusive and skill-oriented education system which acknowledges the diverse needs of learners. To this end, policymakers andeducational leaders will champion reforms that ensure equitable access. There will also be a strong need to focus on continuous training programmes for fresh skilling as well as thought-out schemes for reskilling, upskilling and lifeskills as important pathways to success. The promotion of an entrepreneurship mindset right from school would presume vital importance.
AI and talent scouting:
From AI-powered talent scouting tothe gig economy galaxy. Many of the trends that have recently transformed our working lifewill continue to evolve by 2024. Everyone will be impacted by this wave of transition and digitization. In 2024, the continued prevalence of the hybrid worktrend will continue to redefine the traditional notions of work,offering a flexible frameworkthat adapts to the diverse and dynamic needs of the modern workforce.
Blended finance is fast emerging as animportant strategic tool forresource aggregation to achieveSDGs in India. As per data available, the Indian blendedfinance market stood at $1.30billion in 2022 and is projectedto reach $2.64 billion by 2027. The year ahead will see it play amore critical role in fillingdevelopment finance gapsacross sectors such as cleanenergy, sustainable agriculture,urban infrastructure,transportation, and so on. India is uniquely positioned to lead the transition towards impact-focused investments in 2024. As in 2023, there will be continued focus on the use of technology and data in impact investing to help investors recognize and quantify the social and environmental effects of their financial decisions.
India is keen to take the lead in setting ESG norms in line with their efforts with assigning sovereign ratings to countries worldwide. In line with this stance, the year will see companies begin to mainstream Environmental Social and Governance (ESG) commitments more seriously, not simply as an exercise incompliance and risk management. Intrinsic to their business strategy, companies will see ESG as an opportunity to redesign their business models from the ground up.
This can help companies toprovide a structured framework to approach corporate sustainability initiatives. Projections indicate that India will be the world’s third largest economy by 2027, surpassing $5trillion in GDP. Heading into 2024, India’s economy looks steady and on an upward trend, but a lot depends on how the interest rate regime is managed in a general election year — a stable government at the centre will continue to give confidence and attract investment into the Indian economy.