United Nations: India’s economic growth for 2025 has been revised downward to 6.3 per cent, but the country continues to rank among the fastest-growing large economies, according to a United Nations report released on Thursday.
The World Economic Situation and Prospects as of mid-2025, published by the UN Department of Economic and Social Affairs (DESA), attributes India’s sustained momentum to robust domestic consumption and government-led investment.
“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, Senior Economic Affairs Officer at DESA, during a press briefing. The report forecasts India’s GDP growth to decline from 7.1 per cent in 2024 to 6.3 per cent in 2025, slightly lower than the 6.6 per cent projection published in January. The economy is expected to expand by 6.4 per cent in 2026.
According to the report, “Resilient private consumption and strong public investment, alongside robust services exports, will support economic growth.” It noted, however, that rising tariffs in the United States could dampen merchandise exports. Exemptions currently granted to sectors like pharmaceuticals, semiconductors, and electronics could help cushion the impact, though the report warned these exemptions may not be permanent.
Inflation in India is projected to ease from 4.9 per cent in 2024 to 4.3 per cent in 2025, within the central bank’s target range. The Reserve Bank of India, after holding its benchmark interest rate at 6.5 per cent since February 2023, initiated its easing cycle in February 2025.
Shantanu Mukherjee, Director of Economic Analysis and Policy Division at UN DESA, said, “It’s been a nervous time for the global economy… We were expecting two years of stable, if subpar, growth, and since then, prospects have diminished.” He confirmed that global growth is now forecast at 2.4 per cent for 2025, down from 2.9 per cent in 2024.
The report highlights broader economic challenges, including policy uncertainty, elevated debt levels, and slowing productivity. It projects growth slowdowns in other major economies—China at 4.6 per cent, the United States at 1.6 per cent, and several developing nations such as Brazil and South Africa.
United Nations Under-Secretary-General Li Junhua warned, “The tariff shock risks hitting vulnerable developing countries hard,” citing potential consequences for export revenues and debt burdens.
The report concludes that stronger international cooperation will be crucial in addressing these rising challenges and supporting inclusive development.