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Despite global uncertainty, India set to grow strongly in 2026: UN
Written By Ankit Kumar
Published: 4:36 PM, Jan 8, 2026 | Updated: 4:37 PM, Jan 8, 2026
The United Nations has projected India’s GDP growth at 6.6 per cent in 2026, even as global growth slows to 2.7 per cent amid geopolitical risks and trade uncertainty. While the estimate is slightly lower than earlier forecasts, India is still expected to remain the fastest-growing major economy, supported by strong domestic demand and steady investment.
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India set to outpace global slowdown in 2026? UN sees resilient growth despite rising geopolitical risks. Source: ANI
Even as many major economies struggle with slower growth, India is set to stand out. The United Nations expects the country’s economy to grow at a healthy 6.6 per cent in 2026, keeping it among the fastest-growing large economies in the world. The forecast comes at a time when geopolitical tensions, trade uncertainty and fiscal stress are weighing on the world economy, underscoring India’s relative resilience amid an increasingly fragile global backdrop.
In its latest World Economic Situation and Prospects 2026 report, the said global economic growth is likely to ease to 2.7 per cent in 2026, down from pre-pandemic trends. Yet, India stands out as a rare major economy expected to sustain growth well above the global average, driven by strong domestic demand, steady investment and improving macroeconomic fundamentals.
UN trims estimate, but outlook remains strong
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The UN has marginally lowered its earlier projection for India, cutting the expected growth rate from 7.4 per cent to 6.6 per cent for 2026. The report is careful to point out that the slowdown has more to do with tougher global conditions than any loss of strength at home. In the UN’s view, India’s economic fundamentals remain intact.
It adds that steady demand from key export markets could help soften the impact of higher US tariffs that have disrupted global trade. Even as policy uncertainty and geopolitical tensions stay high, the report suggests India’s broad-based growth engines should help absorb some of the external shocks.
Notably, the UN’s assessment aligns closely with the outlook of the , which has consistently projected India as the only major economy likely to grow above 6 per cent in 2025–26.
Global economy heads into a slower lane
The UN’s latest report strikes a cautious note on the outlook for the world economy as 2026 approaches. It suggests that global growth may be settling into a slower, more drawn-out phase compared with the years before the pandemic.
Trade is losing momentum, geopolitical tensions continue to simmer, climate-related disruptions are becoming more frequent, and global trade is increasingly fragmented.
India’s internal strength offers support
Advance estimates show India’s real GDP is expected to grow 7.4 per cent in 2025–26, up from 6.5 per cent the previous year. Growth also picked up sharply in the July–September quarter, when the economy expanded 8.2 per cent, compared with 5.6 per cent a year earlier.
India remains fastest-growing major economy
Despite the moderation in projections, both the UN and the IMF agree on one key point: India is set to remain the world’s fastest-growing major economy. At a time when many large economies are struggling to regain pre-pandemic growth trajectories, India’s ability to maintain growth above 6 per cent stands out.
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