Indian economy will grow at 6.3 percent during the current financial year, ahead of China, US, and European Union, a UN report said.
According to the UN’s mid-year update of World Economic Situation and Prospects (WESP), India’s growth is being fuelled by strong household spending, solid government investments and booming services exports. Even as the global economy stands on shaky ground, India continues to shine.
The United Nations said that India will remain the fastest-growing major economy in the world this year. While the growth figure has been slightly revised from the 6.6 percent forecast in January, India is still ahead of other big economies like China, US, and European Union. Next year, India’s economy is expected to grow by 6.4 percent, although that is a small step down from earlier expectations. On the global front, the picture is far less rosy.
The UN said, the world economy is at a precarious moment, 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%. The report also shared some good news on inflation and jobs in India. Inflation is likely to ease from 4.9% in 2024 to 4.3% in 2025, well within the central bank’s comfort zone.
