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.

At the same time, India's gross domestic product (GDP) based growth is estimated to be 6.4% for 2026. The report said that inflation in India is expected to decline from 4.9% in 2024 to 4.3% in 2025, and this is within the RBI's target.

This is a nervous time for the global economy

Global GDP growth rate is estimated to be only 2.4% in 2025. This is 0.40% less than the estimate made in January 2025, as well as being less than 2.9% in 2024. Shantanu Mukherjee, Director of the United Nations Department of Economic and Social Affairs (DESA), said, 'This is a nervous time for the global economy. In January this year, we were expecting stable growth for two years. However, the situation has changed since then. '

Growth in the US is expected to decline significantly, from 2.8% in 2024 to 1.6% in 2025. High tariffs and policy uncertainty will weigh on private investment and consumption. China's growth is expected to slow to 4.6% this year.