{"id":226538,"date":"2026-01-10T09:48:06","date_gmt":"2026-01-10T09:48:06","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/226538\/"},"modified":"2026-01-10T09:48:06","modified_gmt":"2026-01-10T09:48:06","slug":"un-projects-6-6-growth-for-india-despite-us-tariff-impact","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/226538\/","title":{"rendered":"UN Projects 6.6% Growth For India Despite US Tariff Impact"},"content":{"rendered":"

(MENAFN<\/a>– Kashmir Observer)
\n United Nations- India is projected to grow at 6.6 per cent in 2026, registering an\u201cexceptionally high growth in a challenging global environment\u201d, with resilient private consumption and strong public investment largely offsetting the impact of high US tariffs, the United Nations has said.<\/p>\n

The World Economic Situation and Prospects 2026 report released on Thursday by the UN Department of Economic and Social Affairs said that economic growth in India is projected to\u201cmoderate\u201d from an estimated 7.4 per cent in 2025 to 6.6 per cent this year. India will remain the world’s fastest major economy, it said.<\/p>\n

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\u201cResilient private consumption, strong public investment, recent tax reforms, and lower interest rates are expected to support near-term growth. However, higher US tariffs could weigh on export performance in 2026 if current rates persist, as the US market accounts for about 18 per cent of total exports from India,\u201d the report said.<\/p>\n

It added that while tariffs may adversely affect some product categories, key exports such as electronics and smartphones are expected to remain exempt.<\/p>\n

\u201cMoreover, strong demand from other major markets, including Europe and the Middle East, is projected to partially offset the impact,\u201d it said, adding that on the supply side, continued expansion in manufacturing and services sectors will remain a key driver of growth throughout the forecast period.<\/p>\n

The report stressed that India’s growth will be supported by resilient consumption and strong public investment, which\u201cshould largely offset the adverse impact of higher US tariffs\u201d.<\/p>\n

\u201cRecent tax reforms and monetary easing should provide additional near-term support,\u201d it added.<\/p>\n

Ingo Pitterle, Senior Economist and Officer-in-Charge, Global Economic Monitoring Branch, Economic Analysis and Policy Division, UN DESA, told reporters at a briefing here that South Asia will remain the world’s fastest growing region expanding by 5.6 per cent and much of this growth\u201ccomes from India where robust domestic demand, easing inflation supported by a strong harvest and continued policy support are driving growth\u201d.<\/p>\n

On the macroeconomic situation in India, Pitterle said the agency has\u201csignificantly upgraded\u201d its 2025 and 2026 GDP forecast for the country, reflecting an\u201cexceptional combination of factors which have all worked in the direction of stronger growth in India, of a very dynamic economy\u201d.<\/p>\n

He pointed to the strong consumer demand, public investment and falling inflation in India, partly due to a very abundant harvest.<\/p>\n

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The Reserve Bank of India could also lower interest rates and provide a monetary impulse.<\/p>\n

\u201cSo we had monetary impulse, we had a positive fiscal impulse to investment and we had positive impact on GDP from the agricultural sector on top of all the other strong growth drivers India was having. That’s why we’re seeing exceptionally high growth even in a context of a relatively challenging global environment,\u201d Pitterle said.<\/p>\n

Director, Economic Analysis and Policy Division, UN DESA Shantanu Mukherjee added that there has been diversification of India’s export markets to the European Union and the Middle East.<\/p>\n

<\/p>\n

MENAFN10012026000215011059ID1110580294<\/p>\n

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