India’s growth stays strong amid global slowdown: UN

The UN has revised India’s 2025 GDP growth forecast to 6.3%, down from 7.1% in 2024, citing global uncertainties. Despite the downgrade, India remains one of the fastest-growing large economies, backed by resilient consumption, public investment, and strong services exports.

India’s economic growth forecast for 2025 has been revised downward to 6.3% by the United Nations, yet the country continues to rank among the fastest-growing large economies. The revised projections, outlined in the UN’s mid-year update of The World Economic Situation and Prospects 2025, reflect resilient private consumption and strong public investment, despite a moderation in growth.

“India remains one of the fastest growing large economies, driven by strong private consumption and public investment, even as growth projections have been lowered to 6.3 per cent in 2025,” said Ingo Pitterle of the UN DESA at a press briefing. This figure marks a decline from the 7.1% expected in 2024 and is slightly lower than the 6.6% estimated in January.

The report highlights that India’s robust services exports will continue to support growth. While merchandise exports may be affected by looming US tariffs, exempt sectors like pharmaceuticals, semiconductors, and energy may soften the impact.

Unemployment in India remains stable, though gender disparities in employment persist. Inflation is projected to ease from 4.9% in 2024 to 4.3% in 2025, within the Reserve Bank of India’s target range. With inflation declining, the RBI began its easing cycle in February 2025 after maintaining a steady 6.5% policy rate since 2023.

Globally, GDP growth is forecast to slow to 2.4% in 2025, down from 2.9% in 2024, amid rising trade tensions and economic uncertainty. “It’s been a nervous time for the global economy,” noted Shantanu Mukherjee of UN DESA. Growth downgrades are affecting both developed and developing economies, including the US, China, and several emerging markets, threatening efforts in poverty reduction and sustainable development.