The United Nations has increased India’s economic growth forecast for 2026 from earlier 6.4% to 6.6% and for 2027 it is estimated to be 6.7%. The reason for this has been said to be strong purchasing power of the people in the country and high expenditure by the government. It is expected that the negative impact of American tariffs on Indian exports will be reduced to a great extent.
The report said that recent government decisions, such as cut in income tax, simplification of Goods and Services Tax (GST) and reduction in interest rates, will provide further impetus to economic growth in the coming times. According to United Nations global projections, India will continue to be among the fastest growing economies of the world. According to the World Economic Situation and Prospects 2026 report released on Thursday by the United Nations Department of Economic and Social Affairs, India’s economy (GDP) is expected to grow by 7.4% in 2025.
how much will inflation be
The inflation rate in India is estimated to be 4.1% in 2026. During January to November 2025, its average was 2.3%. The United Nations said that according to the financial year, the Indian economy can grow at the rate of 7.2% in 2025-26 and 6.6% in 2026-27. According to the estimates of the National Statistical Office (NSO) released on Wednesday, the country’s GDP will grow by 7.4% in the financial year 2026.
The US has imposed a 50% tariff on India, which also includes an additional 25% duty on imports of Russian oil. America’s share in India’s total exports is about 18%. However, the United Nations says that this impact will be balanced to some extent due to good demand from other big markets like Europe and West Asia. According to the United Nations, the economic outlook for South Asia remains strong, although growth is expected to decline to 5.6% in 2026 compared to 5.9% in 2025. After this, it may again increase to 5.9% in 2027.
Will the world’s GDP increase by this much?
Globally, GDP growth is projected to be 2.7% in 2026, slightly lower than the projected 2.8% in 2025 and lower than the pre-COVID-19 average rate of 3.2%. UN Secretary-General Antonio Guterres said that the combination of economic, geopolitical and technological tensions is changing the global environment, creating new economic uncertainties and social vulnerabilities. He said that many developing countries are still struggling with difficulties and that is why it still remains difficult to achieve the Sustainable Development Goals in most parts of the world.
The US economy is expected to grow by 1.9% in 2025 and 2% in 2026, while China’s economic growth may be 4.9% in 2025 and 4.6% in 2026. The investment situation in developing countries remained different in 2025. The report said that India has registered strong growth in capital investment due to higher government spending on physical and digital infrastructure, defense and renewable energy. Along with this, India has also strengthened its hold in the global electronics supply chain.
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