A United Nations (UN) report has projected India’s GDP growth at a robust 6.6 per cent in 2026, even as global economic growth is expected to slow to 2.7 per cent due to geopolitical risks and policy uncertainty.
“Strong demand in major markets may partially offset the impact of US tariff hikes on India,” the report stated.
Although the UN has lowered India’s growth estimate from an earlier projection of 7.4 per cent, it remains in line with the International Monetary Fund’s (IMF) forecast, which identifies India as the only major economy expected to record growth above 6 per cent in 2025–26.
The UN’s World Economic Situation and Prospects 2026 report warned that the global economy faces the risk of a prolonged period of slower growth compared to the pre-pandemic era. It noted that current growth levels are insufficient to deliver broad-based development gains, leaving many countries, communities, and households behind.
Geopolitical risks, persistent policy uncertainty, and fiscal challenges continue to cloud the global economic outlook. In 2025, a sharp rise in United States tariffs unsettled the global trade environment, though the world economy proved more resilient than initially anticipated.
According to the report, global growth is expected to moderate further in 2026, as weaker international trade will be only partially offset by continued support from monetary easing.
The report also highlighted that while inflation has eased significantly across most economies, rising living costs continue to strain household budgets and worsen inequality. It warned that risks of renewed supply disruptions remain elevated due to conflicts, climate-related disasters, trade fragmentation, and ongoing geopolitical tensions.
Meanwhile, India’s real GDP growth has been projected at 7.4 per cent in FY 2025–26, up from 6.5 per cent in FY 2024–25, according to advance estimates released by the Ministry of Statistics on Wednesday.
India’s economic growth accelerated to a strong 8.2 per cent in the second quarter (July–September) of the current financial year, compared to 5.6 per cent in the corresponding quarter of FY 2024–25, as per official data released in November.
These figures indicate that India continues to be the world’s fastest-growing major economy, despite global headwinds such as US tariff hikes.
The IMF has also forecast that India will be the only major economy to record growth above 6 per cent in 2025–26, as tariff-related disruptions are expected to weigh on global trade and slow worldwide economic growth.
(ADVERTORIAL DISCLAIMER: The above release has been taken from DD News. No editors from The Mainstream were involved in creation of this content.)
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