UN Raises India’s 2026 Growth Outlook, Sees Economy Expanding at 6.6%

The United Nations has upgraded India’s economic growth forecast for 2026 to 6.6%, up from its earlier estimate of 6.4%, and projected growth of 6.7% in 2027, citing resilient private consumption, strong public investment and supportive policy measures.

According to the World Economic Situation and Prospects 2026 report released by the UN Department of Economic and Social Affairs, India is expected to remain one of the fastest-growing major economies globally despite rising geopolitical and trade-related headwinds. The report said recent income tax cuts, GST rationalisation and monetary easing are likely to provide additional momentum to near-term growth.

On a calendar-year basis, India’s GDP is projected to grow 7.4% in 2025 before moderating to 6.6% in 2026 and rebounding slightly to 6.7% in 2027. On a financial-year basis, growth is estimated at 7.2% in FY26 and 6.6% in FY27. Inflation in India is forecast at 4.1% in 2026, remaining within a comfortable range.

The UN acknowledged the potential impact of steep US tariffs, including a 50% levy on Indian goods and penalties linked to Russian oil imports, noting that the US accounts for about 18% of India’s exports. However, it said strong demand from Europe and West Asia is expected to partially cushion the blow.

Globally, growth is projected to slow to 2.7% in 2026, while South Asia’s growth is expected to dip to 5.6% before recovering in 2027, underscoring India’s relative economic resilience.