India's Economic Growth Outlook

According to a United Nations report, India's economic growth is projected to moderate to 6.3% in 2025, down from 7.1% this year. Despite this slight decrease, India remains one of the fastest-growing large economies globally, supported by resilient consumption and government spending.

Challenges and Opportunities

While the country’s merchandise exports may come under pressure due to new US tariffs, sectors such as pharmaceuticals, semiconductors, electronics, energy, and copper, currently exempted, may help cushion the impact. However, these exemptions may not last.

Employment and Inflation

Unemployment in the country has remained stable amid steady economic conditions, but the report warns that gender disparities in the workforce continue to be a major concern. On the inflation front, the UN projects a decline to 4.3% in 2025 from 4.9% in 2024, well within the Reserve Bank of India’s target range.

Global Economic Prospects

The global outlook is more sobering, with the UN expecting world GDP to grow by just 2.4% in 2025, down from 2.9% in 2024. Emerging economies like Brazil, Mexico, and South Africa are facing similar downgrades, with declining commodity prices and weakening investment dampening their outlooks.