India Shines As Global Growth Slows, UN Sees Economy Expanding 6.3% In 2025

India stands out in a slowing global economy. The United Nations projects India’s growth at 6.3 per cent for the current fiscal year. This is the highest among all major economies. The UN expects India to grow by 6.4 per cent in 2026.

The World Economic Situation and Prospects mid-year update credits India’s strong performance to robust domestic demand and steady government spending. The Global Economic Monitoring Branch of the UN’s Department of Economic and Social Affairs prepared the report.

Meanwhile, global growth is losing steam. The UN lowered its forecast to 2.4 per cent for 2025, down from 2.9 per cent in 2024. Trade tensions, policy uncertainty, and weaker cross-border investment are weighing on the global economy.

India benefits from stable employment and low inflation. The Reserve Bank of India expects inflation to ease to 4.3 per cent in 2025. This remains within the target range.

Markets and Manufacturing Drive Momentum

Indian stock markets continue to climb. By December 2024, indices hit record highs. Investor confidence remains strong. The primary market has also stayed active. Global firms like Hyundai and LG are listing their Indian subsidiaries.

Capital markets are funnelling domestic savings into investment. This has strengthened the financial system. The manufacturing sector has nearly doubled its output. According to government data, manufacturing GVA rose from Rs 15.6 lakh crore in 2013–14 to Rs 27.5 lakh crore in 2023–24.

Exports and Defence Sector Reach New Highs

India’s exports hit $824.9 billion in 2024–25. That’s up from $778.1 billion the year before. Exports have surged from $466.22 billion in 2013–14, marking a decade of steady growth.

The defence sector has seen a major boost. Indigenous defence production reached Rs 1,27,434 crore in 2023–24. That’s a 174 per cent rise from Rs 46,429 crore in 2014–15.

Defence exports have soared. They jumped from Rs 686 crore in 2013–14 to Rs 23,622 crore in 2024–25. India now ships defence products to nearly 100 countries. This rapid growth confirms India’s rising status as a global defence supplier.

With sound policies and global trust, India continues to make economic headway—despite global headwinds.

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