Daijiworld Media Network- New Delhi
New Delhi, May 16: Despite a downward revision, India continues to shine as one of the world's fastest-growing large economies, according to the latest United Nations report titled ‘The World Economic Situation and Prospects as of mid-2025’, released on Thursday.
The UN has trimmed India’s GDP growth forecast for 2025 to 6.3%, down from the earlier projection of 7.1% for 2024. However, the report emphasizes that strong domestic consumption and government-led capital spending are key factors propping up the country’s economic momentum amid global uncertainties.
Ingo Pitterle, Senior Economic Affairs Officer at the UN Department of Economic and Social Affairs (DESA), highlighted during a press briefing, “India remains one of the fastest growing large economies, driven by strong private consumption and public investment, even as growth projections have been lowered.”
The global economy, according to the UN report, is teetering on the edge due to rising trade tensions, escalating tariff wars, and growing policy uncertainty, which are collectively disrupting supply chains and raising production costs.
Despite global turbulence, India’s economic resilience stands out. The UN report underlines that “resilient private consumption, strong public investment, and robust services exports” will continue to support India’s economic expansion in the near future.
India's service sector, particularly in IT and financial services, remains a critical engine of growth, while increased capital expenditure by the government is expected to boost infrastructure and create employment.
The latest projections are consistent with a global moderation in growth, where several advanced and emerging economies are showing signs of strain due to inflation, geopolitical conflicts, and shifting trade policies.
For India, however, the economic narrative remains largely positive, bolstered by a young population, digital innovation, and policy reforms aimed at strengthening manufacturing and infrastructure.