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Informist, Friday, Jan. 9, 2026

 

NEW DELHI – The United Nations projects India's GDP to grow 6.6% in 2026-27 (Apr-Mar) and 6.8% in FY28, supported by resilient private consumption and strong public investment, which are seen offsetting the impact of US tariffs. "Recent tax reforms and monetary easing should provide additional near-term support," the UN said in its World Economic Situation and Prospects 2026 report.

 

The UN sees India's GDP growing 7.2% in FY26. According to the government's first advance estimate released Wednesday, India's GDP growth for FY26 is projected at 7.4%. For the calendar year 2026, the UN expects India's GDP growth at 6.6%, against 7.4% in 2025. GDP is seen growing 6.7% in 2027.

 

If the 50% tariff imposed by the US persists, it could weigh on India's export performance in 2026, the UN said. "While tariffs may adversely affect some product categories, key exports such as electronics and smartphones are expected to remain exempt. Moreover, strong demand from other major markets, including Europe and the Middle East, is projected to partially offset the impact," the report said. "On the supply side, continued expansion in manufacturing and services sectors will remain a key driver of growth throughout the forecast period."

 

The UN sees CPI inflation averaging 4.1% in 2026, close to the Reserve Bank of India's target, but higher than 2.7% in 2025. CPI inflation rose to 0.71% in November after falling to a record low of 0.25% in October.

 

The UN said a robust economic performance in India is expected to provide support for the rupee in the near term, which has seen depreciation pressures because of US tariffs and portfolio outflows. "The Indian rupee stabilized against the United States dollar in the first half of the year, supported by broad dollar weakness. However, in the second half, the Indian rupee edged lower following stronger-than-expected growth in the United States and ongoing trade negotiations."  End

 

Reported by Shubham Rana

Edited by Avishek Dutta

 

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