Business

India To Remain The Fastest Growing Economy With 6.6% Growth: UN Report

“India would again be the fastest growing large economy in the world” with a projected annual growth rate of 6.6 per cent, according to Hamid Rashid, the UN head of Global Economic Monitoring. He announced the projections at the release of the World Economic Situation and Prospects 2025 (WESP) report on Thursday. The report predicts India’s growth will accelerate to 6.8% in 2026.

India’s economy will benefit from strong services, pharmaceuticals, and electronics exports. The report also highlighted robust private consumption and rising investments as key growth drivers. Increased capital spending on infrastructure will amplify growth through multiplier effects, Rashid said.

The global economy, in contrast, will grow at only 2.8%. China’s growth will slow to 4.8% this year and 4.5% next year. The US economy will grow at 1.9% in 2025, down from 2.8% in 2024. India’s projected growth surpasses the 6.4% estimate by the National Statistics Office for 2024-25.

WESP predicts South Asia’s growth will reach 5.7% in 2025, driven by India’s strong performance and recoveries in Pakistan and Sri Lanka. However, it warned of risks like geopolitical tensions, debt problems, and climate challenges.

Services, Manufacturing, And Infrastructure Boost Growth

India’s services and manufacturing sectors will continue to expand. Favorable monsoon rains in 2024 have improved crop output expectations for 2025. Inflation is expected to ease to 4.3% this year, staying within the Reserve Bank of India’s target range of 2%-6%.

Employment indicators remain strong. Labor force participation reached record levels in 2024. The urban unemployment rate stayed steady at 6.6%. However, the report noted persistent gender gaps in the labor market.

India’s leadership in growth reflects its robust policy measures and economic resilience. It will continue to shape the region’s and world’s economic narrative in the coming years.

Also Read: India To Expand Natural Gas Pipeline By 10,805 KM, Ethanol Blending To Reach 20% By FY 2025

Ajaypal Choudhary

Recent Posts

Elon Musk Hints At Launching ‘The America Party’ As Political Rift With Trump Widens

Elon Musk has sparked speculation about founding a new political outfit named 'The America Party'…

6 mins ago

Trump Set to Sell His Tesla Car As Clash With Elon Musk Escalates

US President Trump is reportedly planning to sell his Tesla car, purchased in March to…

22 mins ago

Musk-Trump Fallout Threatens NASA And Pentagon Operations: Report

A recent fued between Elon Musk and former US President Donald Trump has raised serious…

56 mins ago

Rajeshwar Singh Honoured With ‘Excellence In Political & Public Life’ Award At House Of Lords

Rajeshwar Singh was honoured with the ‘Excellence in Political and Public Life’ Award at the…

58 mins ago

EaseMyTrip Launches ‘EMT Invest’ To Back Profitable Businesses: CEO Nishant Pitti

India’s leading travel tech company, EaseMyTrip, has launched a new investment platform named ‘EMT Invest’,…

1 hour ago

MyGov Launches Exciting Contests To Celebrate 11 Years Of Transformative Governance

Marking 11 years of transformative governance, citizen engagement platform MyGov has launched a series of…

3 hours ago