UN Report Projects India's GDP Growth at 6.6% for 2026
Economic Outlook for India
New Delhi, Jan 9: A recent report from the United Nations has forecasted that India's GDP growth will reach 6.6 percent in 2026 and 6.7 percent in 2027. This growth is anticipated to be bolstered by robust consumer spending and significant public investment, which are expected to mitigate the negative effects of increased tariffs from the United States.
The 'World Economic Situation and Prospects 2026' report highlights that recent tax reforms and monetary policy adjustments are likely to provide additional support in the near term.
The report indicates that several major developing nations, including China, India, and Indonesia, are projected to maintain strong growth, driven by resilient domestic demand and targeted policy initiatives.
While the outlook for South Asia appears relatively positive, growth is expected to decrease from an estimated 5.9 percent in 2025 to 5.6 percent in 2026, before rebounding to 5.9 percent in 2027.
The global economic landscape has demonstrated resilience; however, the future remains uncertain due to ongoing trade disputes, fiscal challenges, and persistent unpredictability.
According to the report, global growth is anticipated to slow to 2.7 percent in 2026, falling below both 2025 levels and the pre-pandemic average, as weak investment and structural challenges hinder progress despite easing inflation and monetary policy.
While domestic demand and policy easing are fostering growth in the United States and parts of Asia, Europe continues to experience sluggish growth, with high debt levels and climate-related shocks limiting progress in many developing nations.
The report notes that global trade exceeded expectations in 2025, driven by early shipments in anticipation of higher tariffs and strong service exports. However, growth is expected to decelerate in 2026 as these temporary factors diminish and trade barriers along with policy uncertainties linger. Investment levels remain low across most regions.
Global headline inflation is projected to decrease to 3.1 percent in 2026, down from 3.4 percent in 2025. Nonetheless, elevated prices continue to impact real incomes, especially for low-income households, with food, energy, and housing costs being significant contributors to pressure and inequality.
The report stresses that monetary policy alone cannot address ongoing price pressures. A better alignment of monetary, fiscal, and industrial policies is crucial for stabilizing inflation, fostering investment, and protecting vulnerable populations. Targeted and temporary measures can assist households facing high prices and promote social cohesion, while credible medium-term fiscal strategies and prudent debt management are vital for restoring fiscal capacity.