Context:
The United Nations Department of Economic and Social Affairs, in its World Economic Situation and Prospects (WESP) 2026 report, projected India’s GDP growth at 7.4% for 2025–26, reaffirming India’s position as one of the fastest-growing major economies.
Key Highlights:
What is UNDESA?
• A core department of the United Nations Secretariat responsible for economic, social, and environmental development policy coordination.
• Plays a central role in implementing the 2030 Agenda for Sustainable Development and the 17 Sustainable Development Goals (SDGs).
Establishment & Structure
• Established in 1948; restructured into its present form in 1997 through merger of UN development and policy departments.
• Headquarters: New York City, USA.
Core Objectives
• Support countries in achieving sustainable, inclusive, and equitable development.
• Translate global UN commitments into national policy frameworks.
Key Functions
• Global Economic Analysis:
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Publishes flagship reports like World Economic Situation and Prospects (WESP).
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Provides macroeconomic outlook influencing global policy discourse.
• SDG Monitoring & Coordination:
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Tracks progress on the 17 SDGs.
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Supports reporting mechanisms such as the Voluntary National Reviews (VNRs).
• Policy Advisory & Technical Assistance:
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Assists governments in policy design for poverty reduction, inequality, employment, climate action, and social protection.
• Intergovernmental Support:
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Provides secretariat services to:
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United Nations General Assembly
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United Nations Economic and Social Council
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High-Level Political Forum on Sustainable Development
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• Data & Research:
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Maintains global development databases used by policymakers worldwide.
Significance of WESP 2026 Projection
• Highlights India’s macroeconomic resilience amid global uncertainties.
• Influences global institutions such as the International Monetary Fund and World Bank.
• Provides inputs for fiscal and monetary policy formulation.
Relevant Prelims Points:
• UNDESA is part of the UN Secretariat, not an independent specialized agency.
• It supports implementation of the 2030 Agenda (adopted in 2015).
• Works closely with ECOSOC, the principal UN body for economic and social coordination.
• Issue: Slowing global growth, geopolitical tensions, climate challenges.
• Role of UNDESA: Provides early warning through macroeconomic forecasts.
• Benefits:
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Supports evidence-based policymaking.
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Promotes SDG alignment across nations.
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Enhances international economic coordination.
• Challenges:
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Implementation gaps in SDGs.
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Data limitations in developing countries.
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Global economic fragmentation.
• Impact:
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Influences global development finance flows.
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Shapes multilateral economic dialogue (G20, UN forums).
Relevant Mains Points:
• Institutional Position:
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Falls under Article 97–101 of the UN Charter (Secretariat functions).
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Supports deliberations of ECOSOC and UNGA on development matters.
• India & UNDESA:
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India actively participates in SDG monitoring and HLPF reviews.
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WESP projections impact India’s global economic positioning.
• Economic Dimension:
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GDP growth forecasts shape investment climate, sovereign ratings, and capital flows.
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Helps assess progress toward SDG 8 (Decent Work & Economic Growth).
• Governance & Global Order:
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Strengthens multilateralism through coordinated policy dialogue.
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Supports South-South cooperation and capacity building.
• Way Forward:
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Improve data transparency and statistical capacity in developing nations.
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Enhance coordination between UNDESA, IMF, and World Bank.
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Strengthen India’s engagement in shaping global economic governance.
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Align domestic growth strategies with SDG targets.
UPSC Relevance (GS-wise):
• GS II (International Relations): Role of UN bodies in global governance and development cooperation.
• GS III (Economy): GDP projections, global economic outlook, multilateral institutions.
• GS II (Governance): SDG implementation and policy coordination mechanisms.