According to the United Nations’ mid-year World Economic Situation and Prospects (WESP) report, India’s economy is projected to grow at 6.3% in the current financial year, making it the fastest-growing major economy globally—ahead of China (4.6%), the US (1.6%), and the European Union (1%).
This growth is driven by robust household spending, strong government investment, and booming services exports, despite global economic challenges. Although slightly down from the earlier 6.6% forecast in January, India’s performance remains strong in a slowing global economy.
In 2026, India’s GDP growth is expected to be 6.4%, still healthy but slightly below earlier estimates. On a broader scale, the global economy faces rising trade tensions and policy uncertainty, with Germany potentially experiencing negative growth (-0.1%).
The report also highlighted positive trends for India:
- Inflation is expected to decline from 4.9% in 2024 to 4.3% in 2025, staying within the central bank’s target range.
- Employment and economic stability are showing signs of improvement.
India continues to shine as a bright spot in an otherwise fragile global economic outlook.
