UN forecasts India's robust 6.6% GDP growth in 2026 amidst global economic slowdown

New Delhi: India’s economic growth is expected to remain strong in 2026, with the United Nations projecting the country’s GDP to expand by 6.6 per cent, even as global growth is forecast to slow to 2.7 per cent amid mounting geopolitical risks and policy uncertainty.

According to the UN’s World Economic Situation and Prospects 2026 report, India remains among the world’s fastest-growing major economies. Although the projection marks a downward revision from the earlier estimate of 7.4 per cent, it aligns closely with the International Monetary Fund (IMF) outlook, which identifies India as the only major global economy expected to record growth above 6 per cent in 2025–26.

The report notes that strong demand in key international markets may help cushion the impact of higher United States tariffs on Indian exports. However, it also cautions that the global economy faces the risk of an extended period of slower growth compared with the pre-pandemic years, with many countries and vulnerable communities lagging behind in development gains.

Global economic outlook remains clouded by geopolitical tensions, fiscal pressures and policy uncertainty, the report adds. While the world economy proved more resilient than anticipated in 2025 despite tariff disruptions, growth in 2026 is expected to moderate further, with weaker international trade only partially offset by continued monetary support.

Inflation has eased significantly across many economies, but rising living costs continue to strain households and widen inequality. Risks of renewed supply disruptions remain elevated due to conflicts, climate-related disasters, trade fragmentation and geopolitical instability, contributing to heightened global uncertainty.

Meanwhile, India’s domestic outlook remains strongly positive. The country’s real GDP growth rate for FY 2025–26 has been projected at 7.4 per cent, compared with 6.5 per cent in FY 2024–25, according to advance estimates released by the Ministry of Statistics. India recorded a robust 8.2 per cent growth in the July–September quarter of the current financial year, significantly higher than the 5.6 per cent growth in the same quarter of FY 2024–25.

These indicators reinforce India’s position as the world’s fastest-growing major economy, despite external challenges such as US tariff hikes and slowing global trade. The IMF also reiterates that India is expected to remain the only major economy to achieve growth above 6 per cent in 2025–26, even as global economic turbulence continues.

IANS

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