Daijiworld Media Network – New York
New York, May 17: India is set to retain its position as the world’s fastest-growing major economy in 2025, with a projected growth rate of 6.3%, according to the United Nations' mid-year World Economic Situation and Prospects (WESP) report.
The report attributes India’s economic momentum to robust household spending, steady government investment, and thriving services exports. Although the forecast has been revised slightly downward from January’s estimate of 6.6%, India continues to outpace other global powerhouses.
China is expected to grow at 4.6%, the United States at 1.6%, the European Union at 1%, and Japan at just 0.7%. Germany is projected to see a slight economic contraction of -0.1%.
Looking ahead, India's inflation is also expected to decline from 4.9% this year to 4.3% next year—well within the Reserve Bank of India’s comfort zone. Employment levels remain largely stable, although the report highlights the need for greater gender equality in the workforce.
Despite the positive outlook, the report notes potential risks, including possible US tariffs that could affect Indian exports. However, exemptions for sectors such as pharmaceuticals, electronics, energy, and copper may offer some protection.
The UN’s forecast closely aligns with the International Monetary Fund’s recent projection, which estimated India’s growth at 6.2% this year and 6.3% next year.