The United Nations Conference on Trade and Development (UNCTAD) has projected that India's economy will grow by 6.5% in 2025, highlighting the country's robust domestic demand and resilience amid global economic uncertainties.

Key Points

• UNCTAD’s latest Trade and Development Report 2024 predicts India’s GDP growth at 6.5% for 2025, following an estimated growth of 6.7% in 2024.
• The report praises India’s strong domestic demand, particularly in private consumption and public investment, as the main driver of growth.
• India remains one of the fastest-growing major economies in the world, despite global challenges like geopolitical tensions, inflation, and monetary tightening in developed economies.
• UNCTAD notes a recovery in manufacturing and services, along with a positive outlook for agriculture, assuming normal monsoons.
• It also highlights the role of India’s digital economy, ongoing infrastructure development, and policy support in sustaining medium-term growth momentum.
• Inflation in India is expected to remain moderate and within RBI’s target range, giving space for continued economic activity without aggressive monetary tightening.
• However, the report also cautions about rising inequality, youth unemployment, and the need for greater investment in human capital to ensure inclusive growth.
• Globally, UNCTAD projects a slowdown in overall economic activity, with developing nations like India needing to focus on domestic policy resilience to navigate headwinds.