Indian Economy to Grow at 6.3% in 2025, Fastest Among Major Economies: UN Report

India is set to maintain its position as the world’s fastest-growing major economy in 2025, with a projected growth rate of 6.3%, according to the United Nations' mid-year update of the World Economic Situation and Prospects (WESP) report.

India Outpaces China, US, and EU

The report highlights that India’s economy will outperform other major economies, including China (4.6%), the United States (1.6%), and the European Union (1%). This continued momentum is credited to strong household spending, robust government investments, and a surge in services exports, particularly in the tech and business sectors.

Although the figure marks a slight downward revision from the 6.6% forecast made in January, it reflects India's resilience in the face of global economic uncertainty.

Inflation Set to Decline

Another positive indicator in the report is the decline in inflation, which is expected to ease to 4.3% in 2025 from 4.9% in 2024, staying within the Reserve Bank of India's comfort zone. The moderation is seen as a key factor supporting both economic activity and consumption.

India’s economy continues to benefit from digital transformation, infrastructure expansion, and manufacturing push under initiatives like ‘Make in India’ and PLI schemes. Moreover, the country’s strong demographic advantage—with a young, growing workforce—places it in a unique position to capitalize on global supply chain shifts.

The services sector, particularly IT, fintech, and consulting, remains a robust pillar of India’s growth story. Tourism, e-commerce, and green energy are also emerging as vital contributors to the economy.

Global Growth Concerns

The UN, however, sounded a note of caution on the global economy, citing ongoing geopolitical tensions, high interest rates in advanced economies, and slowing trade as potential risks. In this scenario, India’s stable outlook stands out as a bright spot.

As global financial institutions continue to watch India's trajectory closely, the latest UN report reinforces India’s growing role in driving global economic recovery.