India’s economic growth is expected to remain resilient despite rising global uncertainty and trade tensions, even as expansion moderates from last year’s highs, according to a United Nations report released on Thursday, Jan 8.
The World Economic Situation and Prospects (WESP) 2026 projects India’s growth to ease from an estimated 7.4 per cent in 2025 to 6.6 per cent in 2026, supported by robust household consumption, sustained public investment and a more accommodative interest rate environment. Despite external headwinds, India is expected to continue anchoring South Asia’s performance, with the region remaining among the fastest-growing globally.
South Asia’s gross domestic product (GDP) is forecast to expand by 5.6 per cent in 2026 and 5.9 per cent in 2027, following an estimated 5.9 per cent growth in 2025. This sharply contrasts with the global outlook, where output growth is projected to slow to 2.7 per cent in 2026 from 2.8 per cent in 2025, well below the pre-pandemic average of 3.2 per cent. The UN noted that global growth in 2025 showed unexpected resilience despite sharp increases in US tariffs, supported by strong consumer spending and easing inflation. However, it warned that subdued investment and limited fiscal space across many economies could lock the world into a prolonged phase of slower growth.
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