UN report forecasts robust growth in Indian economy

India's economy is set to grow at 6.6% in 2025, maintaining its position as a major driver of global growth at a time when the overall world economy is projected to remain relatively stagnant, according to the United Nations' flagship economic report.

Presenting the 2025 edition of the annual World Economic Situation and Prospects (WESP) report at UN House in New Delhi on 9 January, Dr. Nagesh Kumar, former Director of the UN Economic and Social Commission for Asia and the Pacific (UNESCAP), highlighted that South Asia is expected to remain the world’s fastest-growing region. 

The region’s GDP is anticipated to grow by 5.7% in 2025, fueled by India’s robust economic performance and recoveries across neighboring countries.

As the largest economy in South Asia, India is expected to see 6.6% growth this year and 6.8% growth in 2026, driven by strong private consumption and investment.
 

While lower inflation and anticipated monetary easing across economies could boost global activity in 2025, the report identifies significant challenges ahead. Geopolitical conflicts, escalating trade tensions, and high borrowing costs pose particular risks to low-income and vulnerable countries, potentially hampering progress toward achieving the Sustainable Development Goals (SDGs).

A notable highlight of the report is the emerging opportunity in critical minerals for energy transition. South Asian nations, among other developing countries, stand to benefit from the rising global demand for lithium, cobalt, and rare earth elements. 

 

Access the full report here: https://www.un.org/development/desa/dpad/publication/world-economic-situation-and-prospects-2025/