UN reduced India's GDP growth rate, GDP growth rate will be 6.4% in 2026; Know the reason

The United Nations (UN) cut its estimate of India's economic growth in 2025 down to 6.3%. The United Nations on Thursday published its report, 'World Economic Situation and Prospects by Mid-2025'. It said in this that India is still one of the fastest-growing major economies on the strength of flexible consumption and government expenditure, despite the anticipated deceleration.

The report indicated that the world economy is in a state of uncertainty. This is a consequence of escalating tensions in trade and high policy uncertainty. The recent surge in duties risks raising the cost of production, causing global supply chain disruptions, and adding financial instability. It reported that even with the anticipated deceleration, India is still one of the fastest-growing large economies on the strength of flexible consumption and government expenditure.

India's economy is projected to grow at 6.3% in 2025, down from 7.1% in 2024. The report said, "Strong private consumption and strong public investment, as well as strong service exports, will support economic growth." Earlier, in the 'United Nations World Economic Situation and Prospects' report published in January this year, the global institute had estimated India's growth rate to be 6.6% in 2025.