On May 15, 2025, the UN’s mid-year World Economic Situation and Prospects (WESP) report projected India to grow at 6.3% this fiscal year. Despite a global slowdown and revised projections, India’s growth remains highest among major economies. Strong consumption, investment, and exports are driving this momentum.

BulletsIn

• India to grow at 6.3% in FY2025, fastest among major economies

• UN forecasts China at 4.6%, US at 1.6%, EU at 1%, Germany at -0.1%

• Growth estimate for India trimmed by 30 bps from earlier projection

• Still outpaces global slowdown driven by trade tensions, policy risks

• Growth fuelled by strong consumption, public investment, services export

• Key sectors like pharma, electronics exempt from US tariffs for now

• April 2025 unemployment rate at 5.1%, stable job market overall

• Youth unemployment high: 13.8% overall, 17.2% in urban areas

• Gender gap persists: 5.2% jobless men vs 5% jobless women

• Monthly labour force data launched for real-time tracking