India to Remain Fastest-Growing Major Economy Despite Slight Dip in 2025 GDP Forecast: UN Report

 

The United Nations has revised India's GDP growth forecast for 2025 downward to 6.3%, from its earlier projection. However, India will still remain the fastest-growing major economy in the world despite global uncertainties, according to the UN’s “World Economic Situation and Prospects” mid-year report.

The report notes that India's growth continues to be driven by strong domestic consumption, robust public investment, and a resilient service sector. It recognizes India as a standout economy even amidst global volatility and geopolitical challenges.

Key Highlights:

• India’s GDP growth estimate for 2025: Revised to 6.3%
• 2024 GDP growth expected to be 6.9%
• Strong performance supported by:
  • Government capital expenditure
  • Rising private investment
  • Sustained manufacturing and export growth
• India remains an anchor of growth for the global economy

The UN report emphasizes that India’s macroeconomic stability, along with prudent fiscal management and infrastructure investment, continue to make it a global bright spot.

 

Domestic Report: GDP May Stay Between 6.8%–7% in Q4 2024–25

According to a separate report by the Bank of Baroda’s Economic Research Team, India’s GDP in the fourth quarter of FY 2024–25 is projected to be in the range of 6.8% to 7%, making it a significant contributor to global economic recovery.

This projection is stronger than that of many other major economies, which are expected to grow below 5% amid inflation and policy tightening.

Global Comparisons:

• World GDP growth expected to be 2.7% in 2025
• China's growth: Forecasted at 4.9%
• US growth: Estimated around 2.2%

India’s relatively strong performance is credited to robust agriculture, manufacturing, services, and digital expansion, all of which have withstood global headwinds better than peers.