India redefines global growth: UN ranks it fastest-growing major economy at 6.3%

At a time when the world grapples with economic fragility, India has surged to the forefront as the fastest-growing major economy, according to the United Nations’ mid-year update on the World Economic Situation and Prospects.

Projected to grow at 6.3% in 2025—outpacing all large economies — India's momentum is forecast to extend into 2026, reaching 6.4%, reinforcing its emergence as a beacon of resilience and reform on the global stage.

The report, developed by the United Nations Department of Economic and Social Affairs in partnership with UNCTAD and five regional commissions, presents a sobering outlook for much of the world economy, hindered by trade tensions, policy uncertainty, and declining cross-border investment. India, however, is charting a distinct course.

Domestic demand and fiscal discipline power growth

India’s robust domestic demand, paired with strategic government spending, continues to fuel economic stability. These factors have bolstered employment and kept inflation in check, with projections placing it at a controlled 4.3% in 2025 — well within the Reserve Bank of India’s target range.

Investor confidence has surged alongside this stability. India’s stock markets hit record highs by the end of 2024, outperforming global peers despite geopolitical headwinds. Retail participation soared, with investor accounts rising from 4.9 crore in FY20 to a remarkable 13.2 crore by December 2024 — a clear signal of growing faith in the country’s economic trajectory.

IPO boom signals India’s financial evolution

India has become a global magnet for capital markets. The IPO market saw a 32.1% rise in listings and nearly tripled capital raised between April and December 2024 compared to the previous year. India's share in global IPO listings jumped to 30%, overtaking traditional financial centres and reflecting the country’s growing prominence as a strategic global investment hub.

Multinational giants like Hyundai and LG are now listing their Indian subsidiaries on local exchanges — a strong endorsement of India’s financial ecosystem. Parallel growth in the insurance and pension sectors continues to deepen financial inclusion and resilience.

Manufacturing and exports drive strategic strength

India’s manufacturing base is steadily expanding. The Gross Value Added (GVA) in manufacturing nearly doubled over a decade — from ₹15.6 lakh crore in 2013–14 to ₹27.5 lakh crore in 2023–24 — while maintaining a consistent share of around 17% of GDP.

Exports, both in goods and services, are reaching historic levels. Total exports for 2024–25 hit an unprecedented USD 824.9 billion, up from USD 778.1 billion the previous year. Services exports — India’s standout performer — rose by 13.6% to USD 387.5 billion, while non-petroleum merchandise exports hit a record USD 374.1 billion.

Defense sector marks new frontiers in self-reliance

India’s defense production has witnessed a dramatic leap, growing by 174% over the past decade to ₹1,27,434 crore in 2023–24. Defense exports soared from a mere ₹686 crore in 2013–14 to an astonishing ₹23,622 crore in 2024–25, positioning India as a credible global supplier to nearly 100 countries. These milestones align with the government’s vision of Atmanirbharta— self-reliance — backed by focused policy interventions.

Conclusion: India shapes a new global economic narrative

The UN’s report underscores more than just growth statistics — it reflects India’s multidimensional ascent as a global economic force. From a bullish stock market and manufacturing resilience to rising exports and strategic sector dominance, India is crafting a future rooted in reform, innovation, and global confidence.

In a world wrestling with uncertainty, India is not only holding steady — it’s setting the pace.