The United Nations has revised downward India's economic growth forecast for 2026 to 6.4 per cent from its earlier projection of 6.6 per cent, citing global uncertainties and economic shocks arising from the ongoing West Asia crisis.
India, however, remains one of the fastest-growing major economies, with output still expected to expand by 6.4 per cent, though the step-down from 7.5 per cent in 2025 underscores the drag from higher energy import costs and tighter financial conditions.
According to the report, the West Asia crisis has delivered yet another shock to the global economy, slowing growth, reigniting inflationary pressures and heightening uncertainty.
Senior Economist Ingo Pitterle noted that India is 'not immune' to current global challenges and that the country's large energy imports and exposure to other channels, such as remittances, add to its vulnerability.
The report projects that the country could grow at 6.6 per cent in 2027, with Global GDP growth forecast at 2.5 per cent in 2026, 0.2 percentage points below the January projection and well below pre-pandemic norms.
