India to remain the fastest-growing economy, outpacing China, US, EU: UN Report
India will continue to be the fastest-growing major economy in the world, according to the United Nations (UN). In the mid-year report on the World Economic Situation and Prospects (WESP) released by the UN, it is projected that the Indian economy will see a growth of 6.3 percent in the current fiscal year, amidst a challenging global economic landscape.
The report noted that India’s economic performance stands out when compared to other major economies. Projections indicate that China will grow at 4.6%, the US at 1.6%, Japan at 0.7%, and the EU at a modest 1%. Germany is even forecasted to experience negative growth of -0.1%.
Nevertheless, the growth estimates have been revised downwards by 30 basis points compared to earlier figures. This adjustment reflects the slower growth anticipated in the global economy, attributed to escalating trade tensions and policy uncertainties.
The WESP recently revised its 2026 projection downwards by 30 basis points to 6.4 per cent. Despite this adjustment, India continues to be one of the fastest-growing major economies, thanks to steady consumption and government expenditure. The update from the UN World Economic Situation and Prospects report for 2025 painted a cautious outlook on global economic conditions, citing increasing trade tensions and policy uncertainties.
According to the report, strong private consumption, solid public investment, and robust services export will be key drivers of economic growth.
“While looming United States tariffs weigh on merchandise exports, currently exempt sectors — such as pharmaceuticals, electronics, semiconductors, energy, and copper — could limit the economic impact, though these exemptions may not be permanent,” the report added.
The report highlighted that in India, the job market is experiencing stable levels of unemployment due to consistent economic conditions. However, the presence of ongoing gender disparities in employment indicates a pressing need for increased inclusivity in workforce participation.
Job data in India
According to government data released on Thursday (May 15, 2025), the country’s unemployment rate, calculated on a monthly basis for the first time, was recorded at 5.1% in April of this year.
The Ministry of Statistics & Programme Implementation introduced the monthly Periodic Labour Force Survey (PLFS) to more closely monitor the percentage of unemployed individuals within the eligible workforce in real-time.
Previously, the labour force survey was only released quarterly and annually. The latest data from the current weekly status (CWS) revealed an unemployment rate of 5.1% in April 2025 for individuals of all age groups.
The joblessness rate among men remained slightly elevated at 5.2%, slightly surpassing the rate of women at 5%. Unemployment among individuals aged 15-29 was recorded at 13.8% nationwide, with urban areas experiencing a higher rate of 17.2% compared to rural areas at 12.3%.