NEWS – United Nations (UN) flagship report released

HIGHLIGHTS

• India’s Growth Projections:
  • Indian economy expected to grow by 6% in 2025.
  • Growth rate to rise to 7% in 2026.
• Authorship and Production:
  • Prepared by the United Nations Department of Economic and Social Affairs (UN DESA).
  • In collaboration with UN Trade and Development (UNCTAD) and five UN regional commissions.

KEY POINTS FROM THE REPORT

Global Projections:

• Global Growth: Predicted to remain steady at 2.8% in 2025, unchanged from 2024.

Growth Drivers for India:

1. Infrastructure Development:
   • Capital expenditure on infrastructure expected to have strong multiplier effects on growth.
2. Sectoral Expansion:
   • Continued expansion in manufacturing and services
   • Strong export growth in services and goods like pharmaceuticals and electronics.
3. Agriculture:
   • Favorable monsoon rains in 2024 have improved summer-sowing areas, boosting agricultural output expectations for 2025.

Regional Growth:

• South Asia:
  • Economic growth expected to stay robust, led by India’s performance.
  • Projected growth for South Asia:
    • 5.7% in 2025.
    • 6% in 2026.

Opportunities for Resource-Rich Countries:

• Rising demand for critical minerals presents opportunities for:
  • Boosting growth.
  • Creating jobs.
  • Increasing public revenues for investment in countries like India.