India to Lead Global Growth with 6.3% Expansion, Outpacing China, US, and EU: UN Forecast

Despite a fragile global economic environment, India continues to be a bright spot. As per the United Nations’ mid-year update of the World Economic Situation and Prospects (WESP) report, India is projected to be the fastest-growing major economy in 2024, with a robust growth rate of 6.3%.

This growth is being powered by resilient household consumption, strong government capital spending, and rapidly expanding services exports. Although the forecast is slightly down from the 6.6% estimate made in January, India still outpaces the world’s major economies.

India's 2025 Outlook: Continued Momentum

India is expected to grow at 6.4% in 2025, a slight decrease from earlier projections but still indicative of strong economic fundamentals.

Global Growth Worries Mount

In contrast, the global economy faces headwinds. The UN warns:

“The world economy is at a precarious moment,”
highlighting risks such as rising trade frictions and geopolitical uncertainties. Many economies are forecasted to underperform compared to previous projections.

Comparison with Major Economies (2024 Projections)

• India: 6.3%

• China: 4.6%

• United States: 1.6%

• European Union: 1%

• Japan: 0.7%

• Germany: -0.1% (negative growth)

India’s relative performance makes it a global standout, especially in the face of subdued forecasts across other major economies.

Inflation and Employment Outlook

The WESP report also brought positive updates on India’s inflation and labour markets:

• Inflation is predicted to decline from 4.9% in 2024 to 4.3% in 2025, staying within the RBI’s target range.

• Employment remains stable, though the UN notes that efforts to reduce the gender employment gap must be intensified.

Risks on the Horizon

One key concern is the threat of new US tariffs, which could impact Indian exports. However, some sectors—like pharmaceuticals, electronics, copper, and energy—are currently exempt. These exclusions may mitigate the immediate risk but could change in the future.

What IMF Says

The International Monetary Fund (IMF) also echoed similar optimism last month, predicting India’s GDP growth at 6.2% in 2024 and 6.3% in 2025, reinforcing India’s position as a global growth leader.

Conclusion :

India’s economic trajectory continues to inspire confidence, even as the broader global landscape remains uncertain. The United Nations’ projection of a 6.3% growth rate for 2024, supported by resilient household consumption, strong public investment, and thriving services exports, firmly establishes India as the world’s fastest-growing major economy.

Despite a slight downward revision from earlier estimates, India remains well ahead of other global powerhouses like China, the US, and the EU. Positive signals on inflation and employment further reinforce the nation’s economic stability, though bridging the gender gap in jobs remains an area of concern.

The potential imposition of new US tariffs could pose risks to exports, yet exemptions in key sectors may offer temporary relief. Alongside similar forecasts from the IMF, the UN report affirms India’s pivotal role in global economic recovery. With steady fundamentals and strategic resilience, India is well-positioned to sustain its momentum and drive future global growth.