New Delhi, May 17, 2025 – The United Nations Department of Economic and Social Affairs (UNDESA) has revised India’s GDP growth forecast for the year 2025 downward to 6.3%, from its earlier estimate of 6.6%.
According to the latest World Economic Situation and Prospects (WESP) report, the revision reflects ongoing global trade tensions, regional geopolitical instability, and policy uncertainties that are dampening economic activity and investor confidence in the region.
Key Reasons Cited by the UN:
- Uncertainty in the global trade environment
- Spillover effects from regional conflicts
- Slower private investment growth
- Inflationary pressures
- Uneven post-pandemic recovery in rural and informal sectors
Despite the downgrade, India remains one of the fastest-growing major economies in the world. The report also highlighted the country’s strong domestic consumption, robust service sector performance, and expanding digital economy as key positives for long-term stability.
Expert View:
“While the 6.3% growth estimate is lower than expected, India’s fundamentals remain sound. Structural reforms and infrastructure investments will play a crucial role in ensuring sustained growth,” said a senior economist from UNDESA.
The UN has advised policy makers in India to focus on job creation, green investments, and fiscal discipline to navigate ongoing challenges.
