AGENCY
new delhi, MAY 16
The United Nations has revised India’s economic growth downwards for 2025 to 6.3 per cent, and said that despite a projected moderation, the country remains one of the fastest-growing large economies.
The growth will be supported by resilient consumption and government spending, it said.
In its report titled ‘The World Economic Situation and Prospects as of mid-2025’, the UN said the global economy is at a precarious juncture, marked by heightened trade tensions and elevated policy uncertainty.
The recent surge in tariffs driving the effective US tariff rate up steeply threatens to raise production costs, disrupt global supply chains, and amplify financial turbulence.
The report said that despite a projected moderation, India remains one of the fastest-growing large economies, supported by resilient consumption and government spending.
Ingo Pitterle, Senior Economic Affairs Officer, Global Economic Monitoring Branch, Economic Analysis and Policy Division, UN Department of Economic and Social Affairs (DESA), said 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.
Resilient private consumption and strong public investment, alongside robust services exports, will support economic growth, the report said.
While looming United States tariffs weigh on merchandise exports, currently exempt sectorssuch as pharmaceuticals, electronics, semiconductors, energy, and coppercould limit the economic impact, though these exemptions may not be permanent, it added.
Notably, the 6.3 per cent growth projection for India in 2025 is slightly lower than the 6.6 per cent estimated in the UN World Economic Situation and Prospects 2025, published in January this year. In terms of unemployment. The report said it remains largely stable amid steady economic conditions, though persistent gender disparities in employment underscore the need for greater inclusivity in workforce participation. The report added that in India, inflation is projected to slow from 4.9 per cent in 2024 to 4.3 per cent in 2025, staying within the central bank’s target range.
Declining inflation has allowed most of the South Asian region’s central banks to commence or continue monetary easing in 2025.
The report said that global GDP growth is now forecast at just 2.4 per cent in 2025, down from 2.9 per cent in 2024 and 0.4 per cent points below the January 2025 projection.
Meanwhile, governments in Bangladesh, Pakistan, and Sri Lanka are expected to continue fiscal consolidation and economic reforms under IMF-supported programmes.
