Citing global uncertainties and economic shocks arising from the ongoing West Asia crisis, the UN Department of Economic and Social Affairs (UN DESA) has revised its economic growth forecast for India downward to 6.4% for 2026 from its earlier projection of 6.6%, highlighting the impact of higher energy import costs and tighter financial conditions. The report added that the country could grow at 6.6% in 2027. It also noted that India remains one of the fastest-growing major economies.
It said West Asia crisis has delivered yet another shock to the global economy, slowing growth, reigniting inflationary pressures and heightening uncertainty. UN DESA’s Ingo Pitterle pointed out that the West Asia ‘shock’ for all countries is having a dual impact on growth - it is lowering growth while at the same time pushing up inflation, and in doing so it is constraining the policy space.
He said ‘India has experienced structurally strong and resilient growth, fueled by consumer demand, public investment, and a robust performance in services exports. These key drivers are expected to remain largely intact, ensuring that India continues to be one of the fastest-growing economies in the world.’ The report further projects Global GDP growth at 2.5% in 2026, 0.2 percentage points below the January projection and well below pre-pandemic norms.
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