Fri May 16 06:53:15 UTC 2025: **News Article:**

**UN Downgrades India’s Growth Forecast Amid Global Economic Slowdown**

**New Delhi – May 16, 2025** – The United Nations has revised its economic growth projections for India to 6.3% in 2025 and 6.4% in 2026, both figures down 0.3 percentage points from earlier forecasts. This adjustment aligns with a broader global economic slowdown, primarily attributed to escalating trade tensions and policy uncertainties.

The U.N.’s mid-year update to its World Economic Situation and Prospects 2025 report, released today, projects global growth to slow to 2.4% in 2025 and 2.5% in 2026, a significant decrease of 0.4 percentage points compared to January’s predictions.

Despite the lowered projections, the report emphasizes India’s continued resilience. “Despite a projected moderation, India remains one of the fastest-growing large economies, supported by resilient consumption and government spending,” the report states. Robust services exports are expected to further bolster economic growth, a trend supported by recent government data indicating a widening services trade surplus.

The report also addresses potential challenges, highlighting the impact of looming U.S. tariffs on merchandise exports. However, it suggests that exemptions in key sectors like pharmaceuticals, electronics, and energy could mitigate some of the economic impact, though these exemptions may not be permanent.

Unemployment in India is described as “largely stable amid steady economic conditions,” but the report underscores the need to address persistent gender disparities in employment to promote greater workforce inclusivity.

Inflation is projected to slow from 4.9% in 2024 to 4.3% in 2025, remaining within the central bank’s target range.

Globally, the UN paints a less optimistic picture, citing “sweeping United States tariff announcements and counter-announcements, along with heightened policy uncertainty” as factors that have significantly eroded global growth prospects. Declining consumer and business confidence, increased financial market volatility, and potential disruptions in manufacturing and supply chains are also contributing to the global economic downturn.

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