United Nations:
India remains the fastest growing big economy and is expected to register a 6.3 percent increase in this financial year, while the global economy faces “uncertain moments” according to the United Nations.
“India is one of the fastest growing large economies operated by strong private consumption and public investment, even decreasing the development estimates by 6.3 percent in 2025” from 6.6 percent of the 6.6 percent, a senior economic affairs officer, Ingo Pitrell, said on Thursday.
The mid-year update of the United Nations of the World Economic Status and Prospects (WESP) reports that India’s economy is estimated to grow rapidly at 6.4 percent next year, even though it is 0.3 percent lower than the January launch.
The report warns, “The world economy is in an indefinite moment.”
“Increased trade stress, policy uncertainty, has greatly weakened the global economic approach to 2025.”
“This is a panic, time for the global economy,” said Shantanu Mukherjee, director of the Economic Analysis and Policy Division.
He said, “In January this year, we were expecting two years to be stable, if the growth on all, and since then, the possibilities have decreased,” he said.
Against this picture, the world’s fifth largest economy, India’s growth, with a global rate of 2.4 percent this year, and with other major economies, according to WESP.
Launch for China is 4.6 percent, US 1.6 percent, Germany (negative) -0.1 percent, Japan 0.7 percent and European Union 1 percent.
The report stated, “Flexible private consumption and strong public investment will support economic growth for India, with the export of strong services”, the report states.
On inflation and employment, WESP saw positive trends for India.
“Inflation is estimated to slow down by 4.9 percent in 2024, up to 4.3 percent in 2025, staying within the central bank’s target limit,” said this.
“Unemployment is largely stable amidst stable economic conditions,” it said, but added a note of caution that “persistent gender inequalities in employment outline the need for more inclusion in the participation of the workforce”.
WESP attracted attention to risks to export sector from American tariff hazards.
“When weighing the US tariff weighing on the export of goods, the currently gives the sectors discount – such as pharmaceuticals, electronics, semiconductors, energy and copper – can limit the economic impact, although these discounts cannot be permanent,” said this.
The International Monetary Fund estimated India’s economy to increase 6.2 percent this year and 6.3 percent next year.
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