United Nations revised India’s GDP growth
forecast for 2026 to 6.4
¨
United Nations revised
India’s GDP growth forecast for 2026 to 6.4% on 20 May 2026.
¨
The earlier forecast had
estimated India’s growth rate at 6.6%.
¨
The revision was released
in reports by the United Nations Department of Economic and Social Affairs (UN
DESA) and the United Nations Economic and Social Commission for Asia and the
Pacific.
¨
ESCAP’s “Economic and
Social Survey of Asia and the Pacific 2026” projected India’s GDP growth at
7.4% for 2025.
¨
The same report projected
India’s growth rate at 6.6% for 2027.
¨
United Nations Conference
on Trade and Development separately projected India’s GDP growth at 6.5% for
2026 on 20 May 2026.
¨
The downgrade was
attributed to global uncertainties and economic shocks linked to the West Asia
crisis.
¨
United Nations economist
Ingo Pitterle also cited rising energy import costs and tighter global
financial conditions as reasons for the slowdown.
¨ India’s exports to the
United States declined by 25% after the US imposed a 50% tariff in August 2025.
¨
The decline contributed
to slower economic activity in the second half of 2025.
¨ India is the world’s largest recipient of remittances.
¨ India has also been affected by the 1% US tax on remittances that came into effect in January 2026.
