United Nations, May 20: India is projected to remain the world’s fastest-growing major economy, with a growth rate of 6.4 per cent this year, according to a mid-year update of the UN’s World Economic Situation and Prospects report.
UN economists noted that India’s growth continues to be supported by strong consumer demand, public investment, and robust services exports, which are expected to remain steady despite global uncertainties triggered by geopolitical tensions and disruptions in energy markets.
The report slightly revised India’s growth forecast downward by 0.2 percentage points from its earlier projection of 6.6 per cent in January. However, it added that the economy is expected to regain momentum next year.
Officials highlighted that India’s diversified economic structure, strong foreign exchange reserves, and refining capacity provide buffers against external shocks, including rising crude oil prices linked to tensions around the Strait of Hormuz.
UN experts also warned that global economic conditions remain fragile, with the world growth forecast reduced to 2.5 per cent. The slowdown has been attributed to geopolitical disruptions, inflationary pressures, and tighter financial conditions.
While China is projected to grow at 4.6 per cent this year and 4.5 per cent next year, and the United States at around 2 per cent, India continues to lead among major global economies in terms of growth.
Despite its strong performance, the report cautioned that risks remain, including potential impacts on remittances, trade costs, and global financial tightening, which could affect future growth momentum.