India's GDP growth revised downward to 6.3 per cent for 2025: UN

Indias economic growth forecast for 2025 has been revised downward to 63 per cent and despite a projected moderation the country remains one of the fastestgrowing large economies supported by resilient consumption and government spending the United Nations has said reported news agency PTIThe UN on Thursday launched a report titled The World Economic Situation and Prospects as of mid2025India remains one of the fastest growing large economies driven by strong private consumption and public investment even as growth projections have been lowered to 63 per cent in 2025 Ingo Pitterle Senior Economic Affairs Officer Global Economic Monitoring Branch Economic Analysis and Policy Division UN Department of Economic and Social Affairs DESA said at a press briefing reported PTIThe report said the global economy is at a precarious juncture marked by heightened trade tensions and elevated policy uncertainty The recent surge in tariffs driving the effective US tariff rate up steeply threatens to raise production costs disrupt global supply chains and amplify financial turbulenceThe report said that despite a projected moderation India remains one of the fastestgrowing large economies supported by resilient consumption and government spendingIndias economy is forecast to grow by 63 per cent in 2025 down from 71 per cent in 2024Resilient private consumption and strong public investment alongside robust services exports will support economic growth the report saidWhile looming United States tariffs weigh on merchandise exports currently exempt sectors such as pharmaceuticals electronics semiconductors energy and copper could limit the economic impact though these exemptions may not be permanent it addedThe 63 per cent growth projection for India in 2025 is slightly lower than the 66 per cent estimated in the UN World Economic Situation and Prospects 2025 published in January this year GDP growth for India for 2026 is projected to be 64 per centIn India unemployment remains largely stable amid steady economic conditions though persistent gender disparities in employment underscore the need for greater inclusivity in workforce participation The report added that in India inflation is projected to slow from 49 per cent in 2024 to 43 per cent in 2025 staying within the central banks target range reported PTIDeclining inflation has allowed most of the South Asian regions central banks to commence or continue monetary easing in 2025 The report noted that the Reserve Bank of India which had kept its policy rate steady at 65 per cent since February 2023 began its easing cycle in February 2025 Meanwhile governments in Bangladesh Pakistan and Sri Lanka are expected to continue fiscal consolidation and economic reforms under IMFsupported programsThe report said that global GDP growth is now forecast at just 24 per cent in 2025 down from 29 per cent in 2024 and 04 percentage points below the January 2025 projectionIts been a nervous time for the global economy In January this year we were expecting two years of stable if subpar growth and since then prospects have diminished accompanied by significant volatility across various dimensions Shantanu Mukherjee director Economic Analysis and Policy Division UN DESA said at the press briefing reported PTIHe said the global economic growth is forecast at 24 per cent for 2025 and 25 per cent for 2026This is a downward revision of 04 percentage points each year back from what we were expecting in January Now this is not a recession but the slowing down is affecting most countries and regions Mukherjee said reported PTIUncertainty over trade and economic policies combined with a volatile geopolitical landscape is prompting businesses to delay or scale back critical investment decisionsThese developments are compounding existing challenges including high debt levels and sluggish productivity growth further undermining global growth prospects the report saidThe report further said that the slowdown is broadbased affecting both developed and developing economies Growth in the United States is projected to decelerate significantly from 28 per cent in 2024 to 16 per cent in 2025 with higher tariffs and policy uncertainty expected to weigh on private investment and consumptionChinas growth is expected to slow to 46 per cent this year reflecting subdued consumer sentiment disruptions in exportoriented manufacturing and ongoing property sector challengesSeveral other major developing economies including Brazil Mexico and South Africa are also facing growth downgrades due to weakening trade slowing investment and falling commodity pricesThe tariff shock risks hitting vulnerable developing countries hard slowing growth slashing export revenues and compounding debt challenges especially as these economies are already struggling to make the investments needed for longterm sustainable development United Nations UnderSecretaryGeneral for Economic and Social Affairs Li Junhua saidFor many developing countries the bleak economic outlook undermines prospects for creating jobs reducing poverty and addressing inequality it said For leastdeveloped countries where growth is expected to slow from 45 per cent in 2024 to 41 per cent in 2025 declining export revenues tightening financial conditions and reduced official development assistance flows threaten to further erode fiscal space and heighten the risk of debt distress reported PTIEscalating trade frictions are further straining the multilateral trading system leaving small and vulnerable economies increasingly marginalised in a fragmented global landscape Strengthening multilateral cooperation is essential to address these challengesRevitalising the rulesbased trading system and providing targeted support to vulnerable countries will be critical to fostering sustainable and inclusive development it saidWith inputs from PTIatOptionskeyd0ddb8ef8f1a62a8cdd22fac27fc5ea7formatiframeheight90width728params