UN Cuts India’s 2025 GDP Growth to 6.3%, But Still Above Global Average

The United Nations (UN) on Thursday cut India's growth to 6.3% for 2025 as compared to its earlier estimate of 6.6% in January. However, it also noted that the country to remain one of the fastest-growing large economies.

“India remains one of the fastest growing large economies, driven by strong private consumption and public investment, even as growth projections have been lowered to 6.3 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.

"Resilient private consumption and strong public investment, alongside robust services exports, will support economic growth,” the report said.

The report titled 'The World Economic Situation and Prospects as of mid-2025' 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 turbulence.

“While 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,” the report added.

The UN also predicted that the country's economy will accelerate and grow at 6.4% in 2026.

In 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 4.9% in 2024 to 4.3% in 2025, staying within the central bank’s target range.

On the other hand, the report said that global gross domestic product (GDP) growth is now forecast at just 2.4% in 2025, down from 2.9% in 2024 and 0.4 percentage points below the January 2025 projection.

“This is a downward revision of 0.4 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,” Shantanu Mukherjee, director, Economic Analysis and Policy Division, UN DESA, said at the press briefing.

[With inputs from PTI]