Latest news with #WorldEconomicSituationandProspects
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.
Hans India
17-05-2025
- Business
- Hans India
India remains fastest growing economy amid global odds: UN
United Nations: India remains the fastest-growing large economy and is expected to record a 6.3 per cent growth this fiscal year, while the global economy faces a 'precarious moment,' according to the UN. '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 from the 6.6 per cent made in January,' Ingo Pitterle, a senior economic affairs officer, said on Thursday. The UN's mid-year update of the World Economic Situation and Prospects (WESP) report said India's economy is projected to grow a tad faster next year at 6.4 per cent, even though it is also 0.3 per cent lower than the January projection. 'The world economy is at a precarious moment,' the report warned. 'Heightened trade tensions, along with policy uncertainty, have significantly weakened the global economic outlook for 2025.' 'It's been a nervous, time for the global economy,' Shantanu Mukherjee, the director of the Economic Analysis and Policy Division, said at the release of the WESP. 'In January this year, we were expecting two years of stable, if subpar growth, and since then, prospects have diminished,' he added. Against this picture, the growth of the world's fifth-largest economy, India, contrasts with the global rate of 2.4 per cent this year, and that of other major economies, according to the WESP. The projection for China is 4.6 per cent, for the US 1.6 per cent, Germany (negative) -0.1 per cent, Japan 0.7 per cent, and the European Union 1 per cent.
Economic Times
16-05-2025
- Business
- Economic Times
UN cuts India's 2025 growth outlook to 6.3% from 6.6%
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi: The United Nations Department of Economic and Social Affairs (UNDESA) has downgraded India's growth forecast for 2025 to 6.3%, from 6.6% projected earlier, attributing it to trade tensions and policy the downgrade, India will remain one of the world's fastest-growing large economies, supported by strong domestic consumption and government spending, according to UNDESA's 'World Economic Situation and Prospects 2025 mid-year update'. "Resilient private consumption and strong public investment, alongside robust services exports, will support economic growth," it ahead to 2026, UNDESA forecast India's gross domestic product (GDP) growth to recover a tad to 6.4%. Optimism in financial markets, solid gains in stock indices, pick up in manufacturing activity, and increase in exports show that "India's economy is not only holding firm but also making headway in an uncertain global environment", the government said on sector's share in India's economic growth remained steady in the last decade, moving to 17.3% in FY24 from 17.2% in FY14. "This steady growth highlights the sector's increasing role in India's economic landscape," the government April 2, the US imposed a reciprocal tariff of 26% on imports from India. Key sectors such as pharmaceuticals, electronics, semiconductors, and energy were exempted from the duty. President Donald Trump later announced a 90-day pause on the tariff implementation until July 9, although a baseline tariff of 10% remains in the exemptions may soften the economic impact on India, the report noted that these may not be India's exports increased to $824.9 billion in FY25, an increase of 6.01% from $778.1 billion in FY24."Exports, especially in strategic areas like defence production, are expanding steadily," said the government on exports surged to ₹23,622 crore in FY25 from ₹686 crore in FY14. "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," said Li Junhua, United Nations Under-Secretary-General for Economic and Social growth in the US will decelerate to 1.6% in 2025 from 2.8% in 2024- below the previous forecast of 1.9%--as higher tariffs and policy uncertainty are expected to dampen private investment and consumption, as per the growth is also expected to slow to 4.6% from an earlier estimate of 4.8%, due to weaker consumer sentiment, disruptions in export-focused manufacturing and ongoing issues in the property sector, it GDP growth is anticipated to fall to 2.4% in 2025 from 2.8%."Slower global growth, elevated inflationary pressures and weakening global trade including a projected halving of trade growth jeopardise progress toward the Sustainable Development Goals," said UNDESA.
Time of India
16-05-2025
- Business
- Time of India
UN cuts India's 2025 growth outlook to 6.3% from 6.6%
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi: The United Nations Department of Economic and Social Affairs (UNDESA) has downgraded India's growth forecast for 2025 to 6.3%, from 6.6% projected earlier, attributing it to trade tensions and policy the downgrade, India will remain one of the world's fastest-growing large economies, supported by strong domestic consumption and government spending, according to UNDESA's 'World Economic Situation and Prospects 2025 mid-year update'. "Resilient private consumption and strong public investment, alongside robust services exports, will support economic growth," it ahead to 2026, UNDESA forecast India's gross domestic product (GDP) growth to recover a tad to 6.4%. Optimism in financial markets, solid gains in stock indices, pick up in manufacturing activity, and increase in exports show that "India's economy is not only holding firm but also making headway in an uncertain global environment", the government said on sector's share in India's economic growth remained steady in the last decade, moving to 17.3% in FY24 from 17.2% in FY14. "This steady growth highlights the sector's increasing role in India's economic landscape," the government April 2, the US imposed a reciprocal tariff of 26% on imports from India. Key sectors such as pharmaceuticals, electronics, semiconductors, and energy were exempted from the duty. President Donald Trump later announced a 90-day pause on the tariff implementation until July 9, although a baseline tariff of 10% remains in the exemptions may soften the economic impact on India, the report noted that these may not be India's exports increased to $824.9 billion in FY25, an increase of 6.01% from $778.1 billion in FY24."Exports, especially in strategic areas like defence production, are expanding steadily," said the government on exports surged to ₹23,622 crore in FY25 from ₹686 crore in FY14. "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," said Li Junhua, United Nations Under-Secretary-General for Economic and Social growth in the US will decelerate to 1.6% in 2025 from 2.8% in 2024- below the previous forecast of 1.9%--as higher tariffs and policy uncertainty are expected to dampen private investment and consumption, as per the growth is also expected to slow to 4.6% from an earlier estimate of 4.8%, due to weaker consumer sentiment, disruptions in export-focused manufacturing and ongoing issues in the property sector, it GDP growth is anticipated to fall to 2.4% in 2025 from 2.8%."Slower global growth, elevated inflationary pressures and weakening global trade including a projected halving of trade growth jeopardise progress toward the Sustainable Development Goals," said UNDESA.
