UN Report on India’s Economic Growth
India’s economy has emerged as a beacon of growth in a turbulent global landscape. The United Nations’ World Economic Situation and Prospects update for 2025 indicates that India is projected to grow at 6.3 per cent. This positions India as the fastest-growing large economy despite challenges such as trade tensions and policy uncertainties affecting the global economy. The resilience of domestic demand and government investment has been very important in sustaining this growth.
Economic Growth Projections
India’s GDP growth for 2025 is estimated at 6.3 per cent, a slight reduction from earlier forecasts. The growth rate for 2026 is projected at 6.4 per cent. This growth contrasts with a global slowdown, which is expected to be around 2.4 per cent. India’s economy is buoyed by strong domestic consumption and public spending, which have helped maintain employment levels.
Capital Markets Performance
India’s capital markets have reached unprecedented heights. By December 2024, the stock market recorded gains, outperforming many emerging markets. Retail investor participation surged dramatically, rising from 4.9 crore in FY20 to 13.2 crore. The primary market saw IPOs increase by 32.1 per cent, with capital raised nearly tripling compared to the previous year.
Manufacturing Sector Growth
The manufacturing sector has shown robust growth over the past decade. The Gross Value Added from manufacturing increased , reflecting both domestic demand and effective policy interventions. Manufacturing’s share of GDP remained stable, indicating consistent performance.
Record Exports
India’s exports reached a record USD 824.9 billion in 2024-25, marking a 6.01 per cent increase from the previous year. Services exports were the main driver of this growth, reaching an all-time high. Merchandise exports also saw substantial gains, showcasing India’s expanding manufacturing capabilities.
Defence Sector Advancements
India’s defence sector has experienced transformational growth. Indigenous production increased , and defence exports soared, reflecting India’s emergence as a credible global supplier. Government initiatives aimed at self-reliance have been crucial in this sector’s success.
Inflation and Employment Stability
Inflation is projected to decline to 4.3 per cent in 2025, remaining within the Reserve Bank of India’s target range. Unemployment levels have remained stable, although gender disparities in employment highlight the need for greater inclusivity in the workforce.
Global Economic Context
The UN report points to a fragile global economy, with rising trade tensions and policy uncertainties. A potential increase in US tariffs could disrupt global supply chains and increase production costs. Emerging economies are experiencing similar downgrades, further complicating the global economic landscape.
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