UN Report Predicts Strong GDP Growth for India Amid Global Economic Challenges

India's Economic Outlook

New Delhi, Jan 8: A recent report from the United Nations (UN) anticipates that India's GDP will grow by an impressive 6.6 percent, despite a forecasted slowdown in global economic growth to 2.7 percent in 2026, attributed to geopolitical tensions and policy uncertainties.

The report indicates that strong demand in key markets may help mitigate the effects of increased tariffs from the US on India.

While the UN has revised India's growth forecast down from 7.4 percent, it aligns with the International Monetary Fund's (IMF) prediction that India will be the only major economy to achieve over 6 percent growth in 2025-26.

According to the UN's 'World Economic Situation and Prospects 2026' report, the global economy is at risk of experiencing a prolonged period of slower growth compared to the pre-pandemic period, with many nations and communities left behind as current growth fails to provide widespread benefits.

Geopolitical risks, ongoing policy uncertainties, and fiscal challenges are casting a shadow over the global economic landscape. In 2025, a significant increase in US tariffs disrupted trade, yet the global economy demonstrated more resilience than anticipated.

The report forecasts that global growth will slow down in 2026, as weaker international trade will only be partially balanced by ongoing monetary easing.

Additionally, while inflation has significantly decreased in many economies, the rising cost of living continues to pressure household finances and worsen inequality. The risk of renewed supply chain disruptions remains high due to conflicts, climate-related disasters, trade fragmentation, and geopolitical tensions, contributing to global uncertainty.

In contrast, India's real GDP growth is projected to reach 7.4 percent in FY 2025-26, an increase from 6.5 percent in FY 2024-25, as per advance estimates released by the Ministry of Statistics on Wednesday.

The country's economic growth surged to a remarkable 8.2 percent in the second quarter (July-September) of the current financial year, compared to 5.6 percent during the same period in FY 2024-25, according to official data released in November.

These figures affirm India's status as the fastest-growing major economy globally, even in the face of challenges such as US tariff increases.

The IMF projects that India will be the only economy expected to achieve over 6 percent growth in 2025-26, as the turmoil from US tariffs is likely to disrupt global trade and hinder overall economic growth.