A UN report projects India’s economy to grow at 6.6% in 2026, down from 7.4% in 2025, as US tariff hikes weigh on exports. Strong demand in major markets is expected to cushion the impact. Global growth is forecast to decline to 2.7% in 2026 from 2.8% in 2025.
The latest UN economic report paints a mixed picture for global growth in 2026. While India remains one of the fastest-growing major economies, its expansion is expected to slow slightly to 6.6% in 2026, compared to an estimated 7.4% in 2025. The moderation reflects external challenges, particularly the impact of US tariff hikes, though strong demand in key international markets is expected to partially offset these pressures.
Key Highlights
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India’s Growth Outlook: Projected at 6.6% in 2026, down from 7.4% in 2025, yet still robust compared to global peers.
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Global Economy: Worldwide growth is forecast to ease to 2.7% in 2026, from 2.8% in 2025, signaling a slowdown in trade and investment flows
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Tariff Impact: US tariff hikes are expected to weigh on India’s exports, but resilient demand in Asia and Europe may soften the blow.
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Sectoral Resilience: India’s domestic consumption, infrastructure push, and services sector remain key drivers of growth.
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Comparative Strength: Despite moderation, India’s growth rate is nearly 2.5 times the global average, underscoring its relative strength.
Strategic Insight
Analysts note that India’s ability to sustain growth above 6% amid global uncertainties highlights its structural resilience. The report emphasizes the importance of policy support, diversification of export markets, and continued investment in infrastructure to maintain momentum. For investors, India remains a bright spot in an otherwise cooling global economy.
Sources: United Nations Economic Outlook Report, Economic Times, Business Standard