UN Report Sees India As Brilliant Spot Amid World Slowdown | Financial system Information
New Delhi: At a time when the worldwide economic system is going through what the United Nations calls a “precarious second”, India has emerged as a uncommon vivid spot.
The UN’s mid-year replace of the World Financial Scenario and Prospects initiatives India’s progress at 6.3 per cent within the present fiscal 12 months, the very best amongst giant economies. This momentum is predicted to proceed into 2026, with progress estimated at 6.4 per cent.
In distinction, the worldwide outlook stays subdued amid rising commerce tensions, coverage uncertainty, and a decline in cross-border investments.
World financial progress is now projected to gradual to 2.4 per cent in 2025, down from 2.9 per cent in 2024, and 0.4 proportion factors beneath the January forecast, the report states.
Amid world headwinds, India stands out not only for its headline progress figures however for the depth and breadth of its progress, from buoyant capital markets and sturdy manufacturing to record-breaking exports and a fast-expanding defence sector. These beneficial properties are rooted in sound coverage decisions, robust home demand and rising world confidence in India’s financial trajectory.
The report launched in mid-2025 updates the sooner World Financial Scenario and Prospects 2025, which got here out on January 9, 2025. It’s ready by the World Financial Monitoring Department inside the Financial Evaluation and Coverage Division of UN’s Division of Financial and Social Affairs (DESA).
India’s progress is being pushed by robust home demand and constant authorities spending. These components have supported secure employment and helped comprise inflation, which is predicted to fall to 4.3 per cent in 2025, staying inside the Reserve Financial institution of India’s goal vary.
Monetary markets are additionally reflecting this optimism. Inventory indices have proven strong beneficial properties, backed by sustained investor confidence. Manufacturing exercise is choosing up, helped by beneficial insurance policies and resilient exterior demand. Exports, particularly in strategic areas like defence manufacturing, are increasing steadily. Collectively, these indicators present that India’s economic system is just not solely holding agency but additionally making headway in an unsure world surroundings.
India’s capital markets have performed a key position in driving financial progress. By channelling home financial savings into investments, they’ve strengthened the monetary system. As of December 2024, the inventory market hit report highs. It outperformed many rising markets regardless of geopolitical tensions and home uncertainties.
The first market has been equally energetic. This sturdy market has attracted multinational companies like Hyundai and LG to checklist their native subsidiaries in India. This shift indicators that India is now not only a market however a strategic associate within the world monetary ecosystem.
India’s manufacturing sector has seen spectacular progress over the previous decade. In accordance with the Nationwide Accounts Statistics from the Ministry of Statistics and Programme Implementation, the Gross Worth Added or GVA of producing at fixed costs almost doubled, rising from Rs 15.6 lakh crore in 2013-14 to an estimated Rs 27.5 lakh crore in 2023-24.
India’s complete exports reached a report $824.9 billion in 2024–25, up 6.01 per cent from $778.1 billion in 2023–24. This marks a major leap from $466.22 billion in 2013–14, reflecting sustained progress over the previous decade.
India’s defence manufacturing touched a brand new milestone within the monetary 12 months 2023–24, with the worth of indigenous manufacturing rising to Rs 1,27,434 crore. This represents a exceptional improve of 174 per cent in comparison with Rs 46,429 crore in 2014-15.
The nation’s defence exports have additionally seen distinctive progress. From a modest Rs 686 crore in 2013-14, exports skyrocketed to Rs 23,622 crore in 2024-25. This quantities to a thirty-four-fold improve over the previous decade. Indian defence merchandise are actually being shipped to just about 100 nations, reflecting India’s rising stature as a world provider of strategic defence tools.
