India is set to retain its position as the fastest-growing major economy globally, according to the United Nations' latest mid-year update on the World Economic Situation and Prospects (WESP) report.
Despite a turbulent global economic climate, the UN projects India's GDP will expand by 6.3% in the current fiscal year.
The report highlights India's robust economic outlook, which stands in stark contrast to slower growth among other leading economies.
China is expected to grow at a rate of 4.6%, while the United States is forecast to expand by 1.6%. Growth in Japan and the European Union is projected at 0.7% and 1%, respectively. Notably, Germany is anticipated to see a slight economic contraction, with a forecasted decline of 0.1%.
However, the UN has revised its growth estimates for the country slightly downward. In its latest update to the WESP report, the UN lowered India’s 2025 growth forecast by 30 basis points, citing a broader global economic slowdown driven by rising trade tensions and persistent policy uncertainties.
Similarly, the projection for 2026 has also been revised downward by 30 basis points to 6.4%. Despite these modest adjustments, India continues to outperform most major economies, buoyed by resilient domestic consumption and sustained public spending, Business Today reports.
Furthermore, according to the UN report, India’s economic momentum will continue to be driven by strong private consumption, sustained public investment, and a resilient services export sector, factors that help offset headwinds from the global economic environment.
“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 stated.
In addition, government data released last week showed that the national unemployment rate stood at 5.1% in April, marking the first time this figure has been calculated on a monthly basis.
The Ministry of Statistics & Programme Implementation launched the monthly Periodic Labour Force Survey (PLFS) to enable real-time tracking of unemployment among the eligible workforce.
Previously, the labour force survey was published only on a quarterly and annual basis. However, the latest figures from the Current Weekly Status (CWS) indicate an overall unemployment rate of 5.1% in April 2025 across all age groups.
The unemployment rate for men stood marginally higher at 5.2%, compared to 5% for women. Among youth aged 15–29, the national unemployment rate was significantly higher at 13.8%, with urban areas seeing a sharper rate of 17.2%, compared to 12.3% in rural regions.