UN Projects Strong Growth for India

On 9th January 2026, according to a new report released by the United Nations Department of Economic and Social Affairs, India is expected to grow by 7.4 per cent in the current financial year, supported by robust consumption and public investment.

Key Points:

Growth Projection for FY25–26: The World Economic Situation and Prospects 2026 report projects India’s GDP growth at 7.4% in the current financial year.
Medium-Term Outlook: India’s economy is expected to grow by 6.6% in FY 2026–27 and 6.8% in FY 2027–28, indicating sustained momentum.
Key Growth Drivers: Growth is being driven by strong domestic consumption and continued public investment.
Policy Support: Recent tax reforms and monetary easing are expected to provide additional near-term support to economic activity.
Developing Economies: The report notes that several large developing economies, including India and Indonesia, are witnessing solid growth due to resilient domestic demand and targeted policy measures.
Global Economic Context: While the global economy has shown resilience, the outlook remains uncertain due to trade tensions, fiscal pressures, and geopolitical uncertainty.
Regional Variations: Growth is supported by domestic demand in the United States and parts of Asia, but remains weak in Europe.
Challenges for Developing Nations: Many developing economies continue to face constraints from high debt levels and climate-related shocks.
Inflation Trends: Global headline inflation is projected to ease to 3.1% in 2026, down from 3.4% in 2025.