Indian Economic Growth Forecast
The Indian economy is anticipated to grow by 6.6% in 2025 and 6.7% in 2026, as per the UN's World Economic Situation and Prospects 2025 report.
Key Growth Drivers
- The public sector plays a crucial role in funding infrastructure, digital connectivity, and social infrastructure.
- Strong investment growth is projected to continue into 2025.
- Expansion in the manufacturing and services sectors will drive the economy.
- Robust export growth in services and specific goods like pharmaceuticals and electronics is expected.
Agricultural Outlook
The 2024 favorable monsoon rains have boosted summer sowing, improving agricultural output expectations for 2025.
Regional Economic Projections
South Asia's economy is expected to grow at 5.7% in 2025 and 6% in 2026, primarily driven by India.
Risks to Economic Outlook
- Potential escalation of geopolitical tensions.
- Deceleration in external demand and ongoing debt challenges.
- Social unrest and vulnerability to climate hazards.
Inflation and Global Growth
Consumer price inflation is forecast to decrease from 4.8% in 2024 to 4.3% in 2025, within the RBI's medium-term target range of 2–6%.
Global growth is projected to remain steady at 2.8% in 2025.
Opportunities and Challenges
India and other resource-rich developing countries have opportunities to boost growth and create jobs through rising demand for critical minerals.
However, these opportunities come with risks, necessitating forward-looking policies, fair benefit-sharing, and sustainable resource extraction practices.
UN Secretary-General António Guterres emphasized the need for global cooperation to manage economic shocks and climate risks effectively.