India’s Economy Projected to Grow at 6.4% in 2026, 6.6% in 2027: UN ESCAP Report
India's Economy
A UN ESCAP report projects India’s economy to grow 6.4% in 2026 and 6.6% in 2027, supported by domestic demand and services, despite global trade challenges and export pressures.
April 22, 2026 | New Delhi: India’s economic growth is expected to remain resilient over the next two years, with the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) projecting a growth rate of 6.4 percent in 2026 and 6.6 percent in 2027. The latest Economic and Social Survey of Asia and the Pacific 2026 highlights that India continues to be a key driver of regional economic expansion. In 2025, the country recorded a robust growth rate of 7.4 percent, significantly contributing to the overall economic performance of the Asia-Pacific region.
According to the report, strong domestic demand, improved consumption patterns, and policy measures such as reductions in Goods and Services Tax played a crucial role in sustaining economic momentum last year. Rural demand and steady domestic purchasing activity also supported growth. However, external challenges remain a concern. The report noted that increased tariffs imposed by the United States in the latter half of 2025 impacted India’s exports, leading to a decline of nearly 25 percent in shipments to the US market. Despite this setback, the services sector has continued to perform strongly, helping offset losses in merchandise exports.
Inflation is expected to remain within manageable levels, with projections indicating a rate of 4.4 percent in 2026 and 4.3 percent in 2027. Stable inflation is likely to support consumption and investment activity across sectors.
The report also underlined the growing importance of green jobs in the region. Estimates by the International Renewable Energy Agency (IRENA) suggest that around 16.6 million green jobs currently exist globally, with India accounting for approximately 1.3 million of these positions. The sector has witnessed steady annual growth, reflecting increasing investment in sustainable development.
Overall, the outlook for India’s economy remains positive, driven by internal strengths and sectoral resilience, even as global uncertainties continue to pose risks.
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