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 trends for 2024?

Climate conversations

2024 is set see erratic and abrupt weather patterns. Renewable energy sector will play a vital role here offering viable solutions.

Green hydrogen, produced from renewable sources, is expected to become increasingly vital. We anticipate major advancements in electrolyser technology, which will significantly improve efficiency and reduce the cost of green hydrogen production.

The growth of renewable energy in 2024 will be closely tied to advancements in energy storage technologies.

Literacy push: From 2024 onwards, the focus on foundational literacy and numeracy will gain momentum, with an emphasis on competency-based learning.

There will also be a need for a paradigm shift towards a more inclusive and skill-oriented education system which acknowledges the diverse needs of learners.

To this end, policymakers and educational 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 life skills 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 to the gig economy galaxy. Many of the trends that have recently transformed our working life will continue to evolve by 2024. Everyone will be impacted by this wave of transition and digitization.

In 2024, the continued prevalence of the hybrid work trend will continue to redefine the traditional notions of work, offering a flexible framework that adapts to the diverse and dynamic needs of the modern workforce.

Impact financing: Blended finance is fast emerging as an important strategic tool for resource aggregation to achieve SDGs in India. As per data available, the Indian blended finance market stood at $1.30 billion in 2022 and is projected to reach $2.64 billion by 2027. The year ahead will see it play a more critical role in filling development finance gaps across sectors such as clean energy, 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.

ESG focus: 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 in compliance 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 to provide a structured framework to approach corporate sustainability initiatives.

Projections indicate that India will be the world’s third largest economy by 2027, surpassing $5 trillion 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.

The writer is Managing Director, IPE Global

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