India’s Economy to Grow by 6.5% in 2025 As Per UNCTAD Forecast

India is set to maintain its position as the fastest-growing major economy in 2025 with an impressive 6.5% GDP growth, according to the latest “Trade and Development Foresights 2025” report released by the United Nations Conference on Trade and Development (UNCTAD). While global economic momentum shows signs of slowing, India stands out for its resilience, fueled by increased public spending and proactive monetary policies.

Key Highlights

India’s Economic Performance

• India is projected to grow at 6.5% in 2025, sustaining its title as the fastest-growing major economy globally.
• The report attributes this growth to robust government expenditure, including infrastructure projects and social sector investments.
• A supportive monetary policy stance by the Reserve Bank of India (RBI) has also played a key role in stimulating demand and economic activity.

Global Economic Scenario

• The global economy is expected to experience a marked slowdown, bordering on a recessionary trajectory.
• Tightening financial conditions, geopolitical uncertainties, and sluggish trade growth are contributing factors to the global economic deceleration.

China’s Outlook

• China, the world’s second-largest economy, is forecast to grow at 4.4% in 2025.
• The country continues to face structural challenges and reduced export momentum, despite domestic stimulus efforts.

United States and European Union Projections

• The United States economy is projected to grow at a modest 1%.
• The European Union is also expected to see 1% growth, but key member nations like France, Germany, and Italy may witness sub-1% expansion, highlighting economic fragility across the region.

Japan’s Economic Performance

• Japan is expected to grow at just 0.5%, reflecting slowing consumer demand, demographic pressures, and weak investment sentiment.

Policy Recommendations

• UNCTAD emphasizes the need for sustained fiscal support and coordinated global action to tackle emerging economic challenges.
• Developing economies are encouraged to invest in infrastructure, digitalization, and green transition to maintain momentum.