UN cuts India's 2025 growth outlook to 6.3% from 6.6%
Live Events
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
New Delhi: The United Nations Department of Economic and Social Affairs (UNDESA) has downgraded India's growth forecast for 2025 to 6.3%, from 6.6% projected earlier, attributing it to trade tensions and policy uncertainty.Despite the downgrade, India will remain one of the world's fastest-growing large economies, supported by strong domestic consumption and government spending, according to UNDESA's 'World Economic Situation and Prospects 2025 mid-year update'. "Resilient private consumption and strong public investment, alongside robust services exports, will support economic growth," it said.Looking ahead to 2026, UNDESA forecast India's gross domestic product (GDP) growth to recover a tad to 6.4%. Optimism in financial markets, solid gains in stock indices, pick up in manufacturing activity, and increase in exports show that "India's economy is not only holding firm but also making headway in an uncertain global environment", the government said on Friday.Manufacturing sector's share in India's economic growth remained steady in the last decade, moving to 17.3% in FY24 from 17.2% in FY14. "This steady growth highlights the sector's increasing role in India's economic landscape," the government noted.On April 2, the US imposed a reciprocal tariff of 26% on imports from India. Key sectors such as pharmaceuticals, electronics, semiconductors, and energy were exempted from the duty. President Donald Trump later announced a 90-day pause on the tariff implementation until July 9, although a baseline tariff of 10% remains in place.While the exemptions may soften the economic impact on India, the report noted that these may not be permanent.Overall, India's exports increased to $824.9 billion in FY25, an increase of 6.01% from $778.1 billion in FY24."Exports, especially in strategic areas like defence production, are expanding steadily," said the government on Friday.Defence exports surged to ₹23,622 crore in FY25 from ₹686 crore in FY14. "The tariff shock risks hitting vulnerable developing countries hard, slowing growth, slashing export revenues, and compounding debt challenges, especially as these economies are already struggling to make the investments needed for long-term, sustainable development," said Li Junhua, United Nations Under-Secretary-General for Economic and Social Affairs.Economic growth in the US will decelerate to 1.6% in 2025 from 2.8% in 2024- below the previous forecast of 1.9%--as higher tariffs and policy uncertainty are expected to dampen private investment and consumption, as per the report.China's growth is also expected to slow to 4.6% from an earlier estimate of 4.8%, due to weaker consumer sentiment, disruptions in export-focused manufacturing and ongoing issues in the property sector, it added.Globally, GDP growth is anticipated to fall to 2.4% in 2025 from 2.8%."Slower global growth, elevated inflationary pressures and weakening global trade including a projected halving of trade growth jeopardise progress toward the Sustainable Development Goals," said UNDESA.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Today
29 minutes ago
- India Today
Trump boasts of ‘monumental damage' to Iran's nuke sites, calls it bullseye strike
Donald Trump on Monday reiterated that US forces struck deep inside Iran early on Sunday, causing "monumental damage" to the country's nuclear sites and called it a bullseye strike and an obliteration of the Fordow, Natanz, and Isfahan nuclear facilities. The strikes came as a major escalation and the first direct US military involvement in the conflict alongside Israel."Monumental Damage was done to all Nuclear sites in Iran, as shown by satellite images. Obliteration is an accurate term! The white structure shown is deeply imbedded into the rock, with even its roof well below ground level, and completely shielded from flame. The biggest damage took place far below ground level. Bullseye!!!," Trump posted from his Truth Social The US deployed powerful bunker-buster bombs on the Fordow nuclear facility, located deep inside a mountain. After more than a week of Israeli assaults targeting Iran's air defence systems and missile infrastructure, Trump ordered airstrikes on Iran with the aim to cripple Tehran's nuclear a post on Truth Social on Sunday, Trump sai, "We have completed our very successful attack on the three nuclear sites in Iran, including Fordow, Natanz, and Esfahan. All planes are now outside of Iran airspace. A full payload of BOMBS was dropped on the primary site, Fordow. All planes are safely on their way home," he that evening, US Secretary of Defence Pete Hegseth called the offensive a huge success, claiming the Middle East country's nuclear programme was "devastated" and "obliterated".advertisement
Time of India
39 minutes ago
- Time of India
Oil stocks in focus as crude hits 5-month high after U.S. strikes Iranian nuclear sites
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of oil and gas companies are expected to be in focus on Monday after crude oil prices surged to their highest levels since January, following U.S. airstrikes on key Iranian nuclear facilities. Brent crude futures rose $1.88, or 2.44%, to $78.89 a barrel as of 11:22 GMT, while U.S. West Texas Intermediate (WTI) crude gained $1.87, or 2.53%, to $ in the session, both benchmarks jumped over 3%, with Brent touching $81.40 and WTI reaching $78.40—both five-month highs—before paring some sharp rise came after U.S. President Donald Trump announced that the U.S. had 'obliterated' Iran's main nuclear sites over the weekend in coordination with Israeli forces. The escalation has raised fears of further instability in the Middle East, with Iran vowing to a key OPEC member, is the bloc's third-largest crude producer. The latest developments have sparked concerns that Tehran could move to block the Strait of Hormuz—a critical waterway that handles nearly 20% of global crude Press TV reported that its parliament has approved a measure to close the strait. While Iran has made similar threats in the past, it has never followed the conflict began on June 13, Brent has surged 13%, while WTI is up around 10%.Analysts, however, cautioned that the current geopolitical risk premium may not sustain unless there is a tangible disruption in global oil supply.: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
Time of India
39 minutes ago
- Time of India
'Bullseye': Trump claims 'monumental damage' inflicted on Iranian nuclear sites
President Donald Trump asserted on his Truth Social platform that Iran's nuclear sites sustained "monumental damage" in the American attack, though a US assessment on the strikes is still underway. "The biggest damage took place far below ground level. Bullseye!!!" he wrote. US defence officials have said they are working to determine about just how much damage the strikes did. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like LG, KT, SK 모든 통신사 개통당일 현금 100만원 당일 지급! 똑똑하게 돌려받자! 인싸통 더 알아보기 Undo Iran as well has not said how much damage was done in the attack, though Tehran has not offered any details so far on the strikes it has faced from Israel in its war with that country. Iran likely filled in tunnels at nuclear sites ahead of US strikes Live Events An analysis of satellite photos by a nuclear nonproliferation group based in Washington shows Iran likely filled in tunnels at its nuclear site at Isfahan ahead of US strikes early Sunday. The Washington-based Institute for Science and International Security published satellite images taken by Airbus it assessed showed trucks dumping soil into tunnels at the site on Friday. The US attack likely targeted the tunnel entries, the group said. "At least three of the four tunnel entrances are collapsed," it said. "The status of the fourth one is unclear." Iran also is believed to have filled in tunnels at its underground Fordo enrichment facility before the American strike. That may have been to protect the sites from the strikes. Meanwhile, the US cruise missile strike at the Isfahan site likely destroyed its uranium conversion facility, the Institute for Science and International Security said. That facility takes natural uranium and turns it into uranium hexafluoride, which is what Iran spins in centrifuges to enrich. Australia endorses US strikes, FM says Australia's Foreign Minister Penny Wong said her government endorsed the US strikes. "We support action to prevent Iran getting a nuclear weapon and that is what this is," she said. Her remarks to Channel Nine news Monday were firmer than an official statement supplied Sunday by her government immediately after the strikes that stopped short of backing President Trump's measures. "Ultimately we want to see de-escalation and diplomacy," Wong said Monday. She would not say whether Australian satellite communications or signals intelligence were employed by the United States. Both countries are members of the Five Eyes intelligence sharing partnership. But Wong said the US had been clear that "this was a unilateral strike."
