GDP Growth
UN cuts India 2026 growth forecast to 6.4% on drag from high energy prices
This story was originally published at 16:49 IST on 20 May 2026
Register to read our real-time news.Informist, Wednesday, May 20, 2026
NEW DELHI – India's GDP is expected to grow 6.4% in 2026, though 20 basis points slower than previously expected, supported by resilient private consumption and strong services exports, the United Nations Department of Economic and Social Affairs said in a report Tuesday. The UN sees growth picking up to 6.6% in 2027, though this forecast is also 10 bps lower than earlier.
The Indian economy grew 7.8% in the December quarter with full-year growth for 2025-26 (Apr-Mar) estimated at 7.6%. In 2025, India's GDP expanded 7.5%. The Reserve Bank of India projects FY27 GDP growth at 6.9%.
India remains one of the fastest growing major economies, the UN said. However, the slowdown in growth from 2025 "underscores the drag from higher energy import costs and tighter financial conditions," the UN said in its World Economic Situation and Prospects report.
"India's diversified energy sourcing and structural buffers, including its refining infrastructure, ample foreign exchange reserves, and fiscal space to manage fuel prices, may limit the direct pass-through of higher crude prices," the report said.
Inflation is forecast at 4.9% – within the Reserve Bank of India's target range of 2-6% – with the policy rate held at 5.25% amid rising inflation risks. CPI inflation rose to a 13-month-high of 3.48% in April, and is expected to rise after oil companies raised retail fuel prices this month. End
Reported by Shubham Rana
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
