India to grow at 6.3%, ahead of China, US, and European Union: UN report

20-May-2025

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Even as the global economy stands on shaky ground, India continues to shine. The United Nations has said that India will remain the fastest-growing major economy in the world this year, with a growth rate of 6.3% expected for the current financial year.

According to the UN’s mid-year update of the World Economic Situation and Prospects (WESP), India’s growth is being fuelled by strong household spending, solid government investments and booming services exports. While the growth figure has been slightly revised from the 6.6% forecast in January, India is still ahead of other big economies.

Next year, India’s economy is expected to grow by 6.4%, although that is a small step down from earlier expectations.

On the global front, the picture is far less rosy. “The world economy is at a precarious moment,” said the UN, pointing to rising trade tensions and policy uncertainty. Many countries are now expected to grow slower than previously thought.

India’s numbers look impressive when compared with other major economies. China is expected to grow at 4.6%, the US at 1.6%, Japan at 0.7%, and the EU at just 1%. Germany may even see negative growth of -0.1%.