The United Nations' World Economic Situation and Prospects update for 2025 projects India's GDP growth at 6.3%, positioning it as the fastest-growing large economy globally.

This growth is underpinned by strong domestic demand and government investment, even as the global economy faces challenges like trade tensions and policy uncertainties.

Key Points:

• India's GDP is projected to grow at 6.3% in 2025, slightly down from earlier forecasts, with a further projection of 6.4% growth in 2026, contrasting with the global growth estimate of 2.4%. 
• The country's capital markets have seen unprecedented growth, with retail investor participation increasing from 4.9 crore in FY20 to 13.2 crore, and IPOs rising by 32.1%, nearly tripling the capital raised compared to the previous year. 
• India's exports reached a record USD 824.9 billion in 2024-25, a 6.01% increase from the previous year, driven primarily by services exports, with merchandise exports also showing substantial gains. 
• The manufacturing sector has demonstrated robust growth over the past decade, with Gross Value Added increasing, reflecting both domestic demand and effective policy interventions, while its share of GDP remained stable. 
• Inflation is projected to decline to 4.3% in 2025, staying within the Reserve Bank of India's target range, and unemployment levels have remained stable, though gender disparities in employment persist.