India's Economic Growth Forecast for 2025 and 2026
| Key Points | Details |
|---|---|
| Why in news | The UN's "World Economic Situation and Prospects 2025" report forecasts India's GDP growth at 6.6% in 2025 and 6.7% in 2026. Inflation is projected at 4.3% (2025). |
| Projected GDP Growth (2025) | 6.6% |
| Projected GDP Growth (2026) | 6.7% |
| Projected Inflation (2025) | 4.3%, within the RBI's target range (2-6%). |
| Key Drivers of Growth | Private consumption, infrastructure investments, manufacturing, and export growth (e.g., pharmaceuticals, electronics). |
| Agriculture Outlook | Favorable monsoon rains in 2024 boosted sowing areas for major crops, improving prospects for 2025. |
| South Asia Growth (2025) | Projected at 5.7%, with India's performance driving the region's growth. |
| Global Growth (2025) | Expected at 2.8%, indicating a subdued global economic environment. |
| Risks to Growth | Geopolitical tensions, external demand slowdown, debt challenges, social unrest, and climate hazards. |
| Report Released By | United Nations (UN). |