India is set to remain the world’s fastest-growing major economy this year, with the United Nations projecting a 6.3% GDP expansion outstripping China, the US, and the European Union. The forecast comes from the UN’s mid-year World Economic Situation and Prospects (WESP) report, which credits strong domestic consumption, government spending, and robust services exports for India’s economic resilience.
While slightly lower than January’s 6.6% estimate, India’s growth still leads major economies, with China expected to expand at 4.6%, the US at 1.6%, and the EU at just 1%. Germany may even contract by 0.1%. The UN warned of global instability due to trade tensions and policy shifts but noted India’s steady inflation decline (4.9% in 2024 to 4.3% in 2025) and stable employment figures though gender gaps persist.
Risks loom, including potential US tariffs impacting exports, though sectors like pharma and electronics currently exempt could buffer losses. The International Monetary Fund (IMF) echoed the UN’s outlook last month, predicting 6.2% growth in 2024 and 6.3% in 2025.
