The United Nations estimated India’s economic growth rate at 6.4% in 2026

According to a United Nations report, India’s economy is expected to grow at a rate of 6.4 percent in 2026 and 6.6 percent in 2027. This indicates that the country continues to maintain its position as a key engine of growth in the Asia-Pacific region.

Earlier, the International Monetary Fund (IMF) on Tuesday revised India’s economic growth forecast for 2026-27 from 6.4% (estimated in January) to 6.5%.

The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), in its latest report “Economic and Social Survey of Asia and the Pacific 2026,” stated that the region’s economies expanded by 5.4 percent in 2025, which is higher than 5.2 percent in 2024.

The report noted that India’s growth increased to 7.4 percent in 2025. “This was supported by strong consumption, particularly from the rural economy, along with a reduction in Goods and Services Tax (GST) rates and a surge in exports ahead of tariff implementation by the United States.”

The report stated that economic activity in India slowed in the second half of 2025. The main reason was a sharp 25 percent decline in exports to the United States, following the imposition of 50 percent tariffs by Washington in August last year.

Key highlights of the United Nations report

The services sector remained a major engine of growth. Inflation is expected to remain relatively stable; it is projected at 4.4 percent in 2026 and 4.3 percent in 2027. This indicates stable expansion along with a controlled price environment.

ESCAP reported that foreign direct investment (FDI) inflows into developing Asia-Pacific economies declined by 2 percent in 2025. This decline occurred amid trade tensions and geopolitical uncertainty, even as global FDI flows increased.

However, India remained one of the top destinations for greenfield investments, attracting around $50 billion in the first three quarters of the year.

India, which was the world’s largest recipient of remittances at $137 billion in 2024, may face challenges from January 2026 due to the United States imposing a 1 percent tax on such transfers.

United Nations report: Green transition and job creation

ESCAP emphasized the role of the clean energy transition in shaping future growth. It cited estimates suggesting that there are 16.6 million green jobs globally, of which about 1.3 million are in India.

Policies such as India’s Production-Linked Incentive (PLI) scheme were highlighted as key tools to boost domestic manufacturing in sectors like solar energy, batteries, and green hydrogen.

The report stated, “Governments can leverage the energy transition to promote new domestic industries,” emphasizing the importance of targeted industrial policies.

United Nations

The United Nations (UN) was officially established on 24 October, 1945. Its purpose was to prevent future conflicts and maintain international peace after the devastation of World War II.

The UN began its operations officially four months after the conclusion of the San Francisco Conference.

Replacing the ineffective League of Nations, the UN Charter was signed on 26 June, 1945 in San Francisco by 50 countries, following the plan of the “Big Three” (United States, United Kingdom, Soviet Union) along with China.

The UN started with 51 original members (including Poland, which signed later) and now has grown to 193 members, with South Sudan being the newest member (2011).