India is expected to record strong economic growth in the current financial year, according to a United Nations report. The United Nations Department of Economic and Social Affairs released its latest growth projections this week.
The report estimates India’s economy will expand by 7.4 percent during the ongoing financial year. Strong domestic consumption and sustained public investment continue to support economic activity. The World Economic Situation and Prospects 2026 report outlines India’s medium-term growth outlook.
It projects economic growth of 6.6 percent for the 2026–27 financial year. The report expects growth to improve slightly to 6.8 percent in the 2027–28 financial year. UNDESA noted that recent tax reforms have strengthened domestic economic conditions. It also said monetary easing measures will provide additional near-term growth support.
The report highlighted that several large developing economies show resilience despite global uncertainties. India and Indonesia were cited as examples of economies supported by domestic demand.
Targeted policy measures have also helped stabilise growth across these economies.
UNDESA observed that the global economy has remained resilient in recent months.
However, the overall global outlook remains uncertain. Trade tensions and fiscal strains continue to weigh on growth prospects.
Persistent uncertainty continues to affect investment and cross-border trade decisions.
Domestic demand and policy easing support economic activity in the United States.
Parts of Asia also benefit from supportive domestic policies. In contrast, economic growth remains weak across much of Europe.
High public debt levels continue to constrain several advanced and developing economies.
Climate-related shocks further challenge growth prospects in vulnerable regions.
The report also provided an update on global inflation trends.
Global headline inflation is projected to ease to 3.1 percent in 2026. This compares with an estimated 3.4 percent inflation rate in 2025. Despite easing inflation, price pressures remain a concern for households. High food, energy and housing costs continue to erode real incomes. Low-income households face greater vulnerability to persistent price pressures.
UNDESA warned that inflation-related inequality remains a global challenge. The report underlined the importance of balanced growth and policy coordination. India’s growth outlook reflects relative stability amid a challenging global environment. Strong domestic fundamentals continue to differentiate India from several other economies.
About the Author
