United Nations: India will remain the world’s fastest growing major economy. According to a recent economic report by the United Nations (UN), India will remain the world’s fastest growing major economy in the coming years. The report states that despite the global economic slowdown and geopolitical tensions, India’s economy has shown remarkable strength. India’s GDP growth rate is projected to be around 6.7% in 2024-25, which is much higher than other major economies such as China, the US and the European Union. The International Monetary Fund (IMF) has recently projected a growth rate of 6.2% in FY 2025-26 and 6.3% in FY 2026-27 for the Indian economy.
The report also highlights that strong domestic demand, government investment in infrastructure, the rapid expansion of the digital economy, and the strength of the service sector are driving India’s growth. In addition, India’s young and large population, along with government incentive schemes for innovation and startups, is further accelerating this growth. The United Nations has also advised India to improve education, healthcare, climate change response, and social security to make its development more inclusive and sustainable. Overall, experts consider the direction of India’s economy to be positive, and they believe it can continue to serve as a major engine of global economic growth in the coming years.
Uncertain times in the global economy :-
- According to the report, in 2024, merchandise trade (exports and imports of goods) contributed 22.2% to world economic output.
- The United States accounts for 14% of global imports, China 10% and Germany 6%.
- Any disruption in trade between the United States and the rest of the world would significantly put global growth at risk.
- The report forecasts a global growth rate of 2.4% in 2025 and 2.5% in 2026.
- The United States economy is expected to grow by 1.6% in 2025, China by 4.6%, Japan by 0.7% and the European Union by 1%.
- Germany, the world’s third-largest economy, will register negative growth of 0.1% in 2025.
Positive signs :-
- Control over inflation
- Increase in foreign investment
- Growth in manufacturing and exports
Potential Challenges :-
- Climate change
- Job creation
- Improvement in education and health services
- Reducing inequality
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