India Press Live
India’s economy is expected to grow by 6.5 per cent in 2025, despite global economic challenges. The United Nations Trade and Development (UNCTAD) report predicts this growth due to strong public spending and monetary easing in the country.
Global growth is projected to slow down to 2.3 per cent in 2025, which indicates a recessionary path for the world economy. Factors such as trade tensions and uncertainty are contributing to this slowdown.
Even though India’s growth rate is slightly lower than the previous year, it remains the fastest-growing major economy. The report highlights that India’s growth will be supported by robust public spending and monetary easing measures. The recent interest rate cut by the central bank is expected to boost household consumption and private investment.
The South Asia region is also expected to expand by 5.6 per cent in 2025, with declining inflation allowing for monetary loosening in most countries. However, challenges like food price volatility and debt dynamics continue to impact economies like Bangladesh, Pakistan, and Sri Lanka.
UNCTAD emphasizes the importance of South-South trade as a source of resilience for developing countries. This type of trade accounts for a significant portion of global trade and offers opportunities for many nations. The report calls for dialogue, negotiation, and stronger regional and global policy coordination to address the economic challenges.
Overall, the UN agency is concerned about the impact of trade tensions and uncertainty on developing countries, especially those with vulnerable economies. It highlights the need for coordinated action to restore confidence and support development progress.
In conclusion, while the global economy faces challenges, India is expected to maintain its growth momentum in 2025. The country’s focus on public spending and monetary easing is projected to support economic growth despite the uncertain global economic environment.
