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NDTV
18-05-2025
- Business
- NDTV
India Emerges As Bright Spot In UN Report Amid Global Economic Slowdown
New Delhi: At a time when the global economy is facing what the United Nations calls a "precarious moment", India has emerged as a rare bright spot. The UN's mid-year update of the World Economic Situation and Prospects projects India's growth at 6.3 per cent in the current fiscal year, the highest among large economies. This momentum is expected to continue into 2026, with growth estimated at 6.4 per cent. In contrast, the global outlook remains subdued amid rising trade tensions, policy uncertainty, and a decline in cross-border investments. Global economic growth is now projected to slow to 2.4 per cent in 2025, down from 2.9 per cent in 2024, and 0.4 percentage points below the January forecast, the report states. Amid global headwinds, India stands out not just for its headline growth figures but for the depth and breadth of its progress, from buoyant capital markets and robust manufacturing to record-breaking exports and a fast-expanding defence sector. These gains are rooted in sound policy choices, strong domestic demand and growing global confidence in India's economic trajectory. The report released in mid-2025 updates the earlier World Economic Situation and Prospects 2025, which came out on January 9, 2025. It is prepared by the Global Economic Monitoring Branch within the Economic Analysis and Policy Division of UN's Department of Economic and Social Affairs (DESA). India's growth is being driven by strong domestic demand and consistent government spending. These factors have supported stable employment and helped contain inflation, which is expected to fall to 4.3 per cent in 2025, staying within the Reserve Bank of India's target range. Financial markets are also reflecting this optimism. Stock indices have shown solid gains, backed by sustained investor confidence. Manufacturing activity is picking up, helped by favourable policies and resilient external demand. Exports, especially in strategic areas like defence production, are expanding steadily. Together, these indicators show that India's economy is not only holding firm but also making headway in an uncertain global environment. India's capital markets have played a key role in driving economic growth. By channelling domestic savings into investments, they have strengthened the financial system. As of December 2024, the stock market hit record highs. It outperformed many emerging markets despite geopolitical tensions and domestic uncertainties. The primary market has been equally active. This robust market has attracted multinational firms like Hyundai and LG to list their local subsidiaries in India. This shift signals that India is no longer just a market but a strategic partner in the global financial ecosystem. India's manufacturing sector has seen impressive growth over the past decade. According to the National Accounts Statistics from the Ministry of Statistics and Programme Implementation, the Gross Value Added or GVA of manufacturing at constant prices nearly doubled, rising from Rs 15.6 lakh crore in 2013-14 to an estimated Rs 27.5 lakh crore in 2023-24. India's total exports reached a record $824.9 billion in 2024-25, up 6.01 per cent from $778.1 billion in 2023-24. This marks a significant leap from $466.22 billion in 2013-14, reflecting sustained growth over the past decade. India's defence production touched a new milestone in the financial year 2023-24, with the value of indigenous manufacturing rising to Rs 1,27,434 crore. This represents a remarkable increase of 174 per cent compared to Rs 46,429 crore in 2014-15. The country's defence exports have also seen exceptional growth. From a modest Rs 686 crore in 2013-14, exports skyrocketed to Rs 23,622 crore in 2024-25. This amounts to a thirty-four-fold increase over the past decade. Indian defence products are now being shipped to nearly 100 countries, reflecting India's rising stature as a global supplier of strategic defence equipment.
Hans India
18-05-2025
- Business
- Hans India
UN report sees India as bright spot amid global slowdown
At a time when the global economy is facing what the United Nations calls a "precarious moment", India has emerged as a rare bright spot. The UN's mid-year update of the World Economic Situation and Prospects projects India's growth at 6.3 per cent in the current fiscal year, the highest among large economies. This momentum is expected to continue into 2026, with growth estimated at 6.4 per cent. In contrast, the global outlook remains subdued amid rising trade tensions, policy uncertainty, and a decline in cross-border investments. Global economic growth is now projected to slow to 2.4 per cent in 2025, down from 2.9 per cent in 2024, and 0.4 percentage points below the January forecast, the report states. Amid global headwinds, India stands out not just for its headline growth figures but for the depth and breadth of its progress, from buoyant capital markets and robust manufacturing to record-breaking exports and a fast-expanding defence sector. These gains are rooted in sound policy choices, strong domestic demand and growing global confidence in India's economic trajectory. The report released in mid-2025 updates the earlier World Economic Situation and Prospects 2025, which came out on January 9, 2025. It is prepared by the Global Economic Monitoring Branch within the Economic Analysis and Policy Division of UN's Department of Economic and Social Affairs (DESA). India's growth is being driven by strong domestic demand and consistent government spending. These factors have supported stable employment and helped contain inflation, which is expected to fall to 4.3 per cent in 2025, staying within the Reserve Bank of India's target range. Financial markets are also reflecting this optimism. Stock indices have shown solid gains, backed by sustained investor confidence. Manufacturing activity is picking up, helped by favourable policies and resilient external demand. Exports, especially in strategic areas like defence production, are expanding steadily. Together, these indicators show that India's economy is not only holding firm but also making headway in an uncertain global environment. India's capital markets have played a key role in driving economic growth. By channelling domestic savings into investments, they have strengthened the financial system. As of December 2024, the stock market hit record highs. It outperformed many emerging markets despite geopolitical tensions and domestic uncertainties. The primary market has been equally active. This robust market has attracted multinational firms like Hyundai and LG to list their local subsidiaries in India. This shift signals that India is no longer just a market but a strategic partner in the global financial ecosystem. India's manufacturing sector has seen impressive growth over the past decade. According to the National Accounts Statistics from the Ministry of Statistics and Programme Implementation, the Gross Value Added or GVA of manufacturing at constant prices nearly doubled, rising from Rs 15.6 lakh crore in 2013-14 to an estimated Rs 27.5 lakh crore in 2023-24. India's total exports reached a record $824.9 billion in 2024–25, up 6.01 per cent from $778.1 billion in 2023–24. This marks a significant leap from $466.22 billion in 2013–14, reflecting sustained growth over the past decade. India's defence production touched a new milestone in the financial year 2023–24, with the value of indigenous manufacturing rising to Rs 1,27,434 crore. This represents a remarkable increase of 174 per cent compared to Rs 46,429 crore in 2014-15. The country's defence exports have also seen exceptional growth. From a modest Rs 686 crore in 2013-14, exports skyrocketed to Rs 23,622 crore in 2024-25. This amounts to a thirty-four-fold increase over the past decade. Indian defence products are now being shipped to nearly 100 countries, reflecting India's rising stature as a global supplier of strategic defence equipment.
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First Post
17-05-2025
- Business
- First Post
UN revises India's 2025 GDP growth to 6.3% in mid-year report
The UN report said that despite a projected moderation, India remains one of the fastest-growing large economies, supported by resilient consumption and government spending read more India's economic growth forecast for 2025 has been revised downward to 6.3 per cent, and despite a projected moderation, the country remains one of the fastest-growing large economies, supported by resilient consumption and government spending, the United Nations has said. The UN on Thursday launched a report titled 'The World Economic Situation and Prospects as of mid-2025'. 'India remains one of the fastest growing large economies, driven by strong private consumption and public investment, even as growth projections have been lowered to 6.3 per cent in 2025,' Ingo Pitterle, Senior Economic Affairs Officer, Global Economic Monitoring Branch, Economic Analysis and Policy Division, UN Department of Economic and Social Affairs (DESA), said at a press briefing here. STORY CONTINUES BELOW THIS AD The report said the global economy is at a precarious juncture, marked by heightened trade tensions and elevated policy uncertainty. The recent surge in tariffs—driving the effective US tariff rate up steeply—threatens to raise production costs, disrupt global supply chains and amplify financial turbulence. The report said that despite a projected moderation, India remains one of the fastest-growing large economies, supported by resilient consumption and government spending. India's economy is forecast to grow by 6.3 per cent in 2025, down from 7.1 per cent in 2024. 'Resilient private consumption and strong public investment, alongside robust services exports, will support economic growth,' the report said. 'While looming United States tariffs weigh on merchandise exports, currently exempt sectors—such as pharmaceuticals, electronics, semiconductors, energy, and copper—could limit the economic impact, though these exemptions may not be permanent,' it added. The 6.3 per cent growth projection for India in 2025 is slightly lower than the 6.6 per cent estimated in the UN World Economic Situation and Prospects 2025 published in January this year. GDP growth for India for 2026 is projected to be 6.4 per cent. In India, unemployment remains largely stable amid steady economic conditions, though persistent gender disparities in employment underscore the need for greater inclusivity in workforce participation. The report added that in India, inflation is projected to slow from 4.9 per cent in 2024 to 4.3 per cent in 2025, staying within the central bank's target range. STORY CONTINUES BELOW THIS AD Declining inflation has allowed most of the South Asian region's central banks to commence or continue monetary easing in 2025. The report noted that the Reserve Bank of India, which had kept its policy rate steady at 6.5 per cent since February 2023, began its easing cycle in February 2025. Meanwhile, governments in Bangladesh, Pakistan and Sri Lanka are expected to continue fiscal consolidation and economic reforms under IMF-supported programs. The report said that global GDP growth is now forecast at just 2.4 per cent in 2025, down from 2.9 per cent in 2024 and 0.4 percentage points below the January 2025 projection. 'It's been a nervous time for the global economy. In January this year, we were expecting two years of stable, if subpar, growth, and since then, prospects have diminished, accompanied by significant volatility across various dimensions,' Shantanu Mukherjee, director, Economic Analysis and Policy Division, UN DESA, said at the press briefing. STORY CONTINUES BELOW THIS AD He said the global economic growth is forecast at 2.4% for 2025 and 2.5% for 2026. 'This is a downward revision of 0.4 percentage points each year, back from what we were expecting in January. Now this is not a recession, but the slowing down is affecting most countries and regions,' Mukherjee said. Uncertainty over trade and economic policies, combined with a volatile geopolitical landscape, is prompting businesses to delay or scale back critical investment decisions. These developments are compounding existing challenges, including high debt levels and sluggish productivity growth, further undermining global growth prospects, the report said. The report further said that the slowdown is broad-based, affecting both developed and developing economies. Growth in the United States is projected to decelerate significantly, from 2.8 per cent in 2024 to 1.6 per cent in 2025, with higher tariffs and policy uncertainty expected to weigh on private investment and consumption. China's growth is expected to slow to 4.6 per cent this year, reflecting subdued consumer sentiment, disruptions in export-oriented manufacturing and ongoing property sector challenges. STORY CONTINUES BELOW THIS AD Several other major developing economies, including Brazil, Mexico and South Africa, are also facing growth downgrades due to weakening trade, slowing investment and falling commodity prices. 'The tariff shock risks hitting vulnerable developing countries hard, slowing growth, slashing export revenues, and compounding debt challenges, especially as these economies are already struggling to make the investments needed for long-term, sustainable development,' United Nations Under-Secretary-General for Economic and Social Affairs Li Junhua said. For many developing countries, the bleak economic outlook undermines prospects for creating jobs, reducing poverty, and addressing inequality, it said. For least developed countries—where growth is expected to slow from 4.5 per cent in 2024 to 4.1 per cent in 2025—declining export revenues, tightening financial conditions, and reduced official development assistance flows threaten to further erode fiscal space and heighten the risk of debt distress. Escalating trade frictions are further straining the multilateral trading system, leaving small and vulnerable economies increasingly marginalised in a fragmented global landscape. Strengthening multilateral cooperation is essential to address these challenges. STORY CONTINUES BELOW THIS AD Revitalising the rules-based trading system and providing targeted support to vulnerable countries will be critical to fostering sustainable and inclusive development, it said.
