The Indian economy is projected to grow at 6.6 percent in 2026, as compared to the earlier estimation of 7.4% growth in 2025, reported Reuters citing a United Nations report released on Thursday. Meanwhile, the UN has projected global economic growth to decline to 2.7 percent this year, from 2.8 percent estimate for the last year.
“Strong demand in major markets may partially offset US tariff hike impact on India,” the report said.
Also read: India’s GDP pegged to grow at 7.4% for FY26 despite tariff heat
The Indian government on Wednesday released the annual Gross Domestic Product (GDP) estimates for the current fiscal year. projecting an economic growth of 7.4%. This underscores India’s resilience, even as global growth slows and financial conditions remain tight amid Trump tariff heat.
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The Reserve Bank of India has estimated GDP growth at 7.3%, compared to its 2025 estimates of 6.5%.
UN World Economic Situation and Prospects 2026: Global outlookAs per the UN’s World Economic Situation and Prospects 2026 report, global trade is projected to slow to 2.2 percent this year from 3.8 percent growth in 2025.The United States, world’s largest economy, is project to grow 2 percent this year, supported by monetary, fiscal easing, up from 1.9% in 2025, as per Reuters citing UN report. The UN projected China’s growth at 4.6% this year and 4.5% for the next year.
The UN report stated that the global economy faces the risk of a prolonged period of slower growth compared with the pre-pandemic era, with current growth failing to deliver broad-based development gains, leaving many countries, communities, and households behind.
Continuing policy uncertainty, geopolitical risks and fiscal challenges cloud the global economic outlook. “In 2025, a sharp rise in US tariffs unsettled the trade environment, but the world economy proved more resilient than expected,” it said.
The UN expects global growth to moderate as weaker international trade is only partially offset by continued support from monetary easing in 2026. The report noted that inflation has eased considerably in most economies, yet rising cost of living continue to strain household budgets and exacerbate inequality.
(with inputs from Reuters)