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Due to the new tariffs and global trade tension of the Trump administration, there is an atmosphere of economic uncertainty all over the world, there has been good news about India’s economy. According to a recent report by the United Nations (UN), India will remain the fastest growing economy in 2025 with a 6.5 percent economic growth rate. This report on Wednesday United Nations Trade and Development Conference (UNCTAD) Has released
Global economy threatens recession
Unctad report “Trade and development foresight 2025: global economic possibilities in pressure and uncertainty” According to, the global economic growth rate is expected to be reduced to 2.3 percent in 2025. The main reason for this is the tremors, financial instability and increasing uncertainty associated with the trade policy. According to the report, this situation is taking the world economy towards recession.
India’s growth rate stable but impressive
India’s economic growth rate was 6.9 percent in 2024, while the estimated growth rate for 2025 is 6.5 percent. Although this decline is minor, India will still remain the fastest growing major economy globally.
The report states that the basis of this growth is strong public spending and liberal monetary policy. In February 2025, the repo rate was reduced by 0.25 percent by the Reserve Bank of India, which would help in encouraging domestic consumption and private investment.
South Asia and Challenges
The regional growth rate of South Asia is estimated to be 5.6 percent in 2025. Most countries have adopted soft monetary policies due to a decline in inflation. However, the report has warned about Bangladesh, Pakistan and Sri Lanka that food prices fluctuations and debt complexity can put additional pressure on these countries.
Effect of global trade stress
UNCTAD says that uncertainty in global trade policy has historically reached a high level. This has adversely affected investment decisions, declining employment speed and global supply chain. The report expressed concern that many lower-oriented countries are facing external financial conditions, unstable debt and weak domestic demand.
Suggestions and solutions
UNCTAD has appealed to strengthen trade and economic relations, promote regional and global policy coordination and prioritize dialogue between countries. “International efforts are necessary to restore global confidence and ensure sustainable growth,” the report said.