Daijiworld Media Network – New Delhi
New Delhi, Apr 21: India’s economy is projected to grow at 6.4 per cent in 2026 and further accelerate to 6.6 per cent in 2027, according to a report released by the United Nations Economic and Social Commission for Asia and the Pacific.
The report, titled Economic and Social Survey of Asia and the Pacific 2026, noted that South and South-West Asian economies grew by 5.4 per cent in 2025, up from 5.2 per cent in 2024, largely driven by strong economic performance in India.
India’s growth reached 7.4 per cent in 2025, supported by robust domestic consumption, particularly in rural areas, along with goods and services tax rate cuts and export frontloading ahead of tariff hikes by the United States.
However, economic activity moderated in the latter half of 2025 after exports to the US declined by 25 per cent following the imposition of 50 per cent tariffs in August. Despite this, the services sector continued to remain a key driver of growth.
The report also projected inflation in India at 4.4 per cent in 2026 and 4.3 per cent in 2027, indicating relative price stability.
On the investment front, foreign direct investment (FDI) inflows into developing Asia-Pacific economies declined by 2 per cent in 2025 amid global trade tensions and geopolitical uncertainties, even as global flows rose by 14 per cent. India remained among the top destinations for greenfield investments, attracting around $50 billion in the first three quarters of the year.
Remittances continued to play a crucial role in supporting household consumption. India, the world’s largest recipient of remittances at $137 billion in 2024, may face some impact due to a 1 per cent tax imposed by the US on remittance flows from January 2026.
The report also highlighted the growing importance of green jobs and sustainable development. Globally, there were around 16.6 million green jobs, with India accounting for approximately 1.3 million of these.
It emphasised that government policies, including India’s production-linked incentive (PLI) scheme, are helping boost domestic manufacturing in sectors such as solar energy, batteries and green hydrogen, while reducing dependence on imports.
The UN body noted that targeted industrial policies and public investment could further accelerate the transition to a sustainable economy, creating new industries and employment opportunities across the region.