India Retains Status as Fastest-Growing Economy Amid Global Uncertainty: UN

India has retained its status of being the fastest growing large economy and is expected to record a 6.3% growth this fiscal year, while the global economy faces a "precarious moment," according to the UN.

India: Fastest-Growing Large Economy

"India remains one of the fastest growing large economies driven by strong private consumption and public investment, even as growth projections have been lowered to 6.3% in 2025" from the 6.6% made in January, Ingo Pitterle, a senior Economic Affairs Officer, said on Thursday.

What Does UN Say In Its Report?

The United Nations (UN) in its World Economic Situation and Prospects (WESP) report said that India's economy is projected to grow relatively faster next year at 6.4%, though it is 0.3% lower than the January projection.

"The world economy is at a precarious moment," the report said, adding, "heightened trade tensions, along with policy uncertainty, have significantly weakened the global economic outlook for 2025."

According to Shantanu Mukherjee, the Director of the Economic Analysis and a Policy Division, WESP said in a statement, "It's been a nervous, time for the global economy."

He added, "in January this year, we were expecting two years of stable, if subpar growth, and since then, prospects have diminished."

An IANS report cited WESP saying that against this picture, the growth of India, which is the fifth largest economy in the world, contrasts with the global rate of 2.4% this year, and that of other major economies.

In terms of inflation and employment, the WESP saw positive trends for India.

Last month, the International Monetary Fund projected India's growth rate to be at 6.2% this year and 6.3% next year.

How Did Other Countries Perform?

While the projection for China's growth rate is 4.6%, it is 1.6% for the United States, -0.1% for Germany, 0.7% for Japan and 1% for the European Union.

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