Despite global economic uncertainty, India is set to remain the fastest-growing major economy in 2024, according to the United Nations. In its latest World Economic Situation and Prospects (WESP) mid-year update, the UN projects India’s economy to grow by 6.3% this year — outpacing China, the United States, and the European Union.

The forecast, though slightly lower than the 6.6% estimate made in January, reflects India’s resilience in the face of a challenging global landscape.

The UN report credits India’s strong performance to rising household consumption, sustained public investments, and thriving services exports. These pillars continue to support economic momentum even as many other countries revise their growth figures downward.

Looking ahead, India is expected to grow by 6.4% in 2025 — a small drop from earlier predictions but still among the highest globally.

In sharp contrast, many of the world’s largest economies are struggling to maintain momentum. China’s economy is projected to expand by 4.6%, the US by 1.6%, and the European Union by only 1%. Japan is expected to grow at 0.7%, while Germany could even see a contraction of -0.1%.

“The world economy is at a precarious moment,” the UN said, highlighting rising trade tensions and policy uncertainty as key concerns.

The report also brought encouraging news on inflation and jobs in India. Inflation is expected to drop from 4.9% in 2024 to 4.3% in 2025 — staying within the Reserve Bank of India’s comfort zone.

Employment numbers remain mostly steady. 

While India’s economic outlook remains strong, risks remain. The UN warned that new tariffs from the United States could hit Indian exports. That said, some sectors like pharmaceuticals, electronics, energy, and copper currently enjoy exemptions — though these may not last indefinitely.

Last month, the International Monetary Fund (IMF) also offered a similar assessment, predicting India’s GDP to grow by 6.2% this year and 6.3% in 2025.

As the global economy faces uncertainty, India appears to be holding its ground — and even pulling ahead.