The United Nations has lowered India’s economic growth forecast for 2026 from 6.6% to 6.4%. The UN said global uncertainty and the ongoing West Asia crisis affected the decision. Despite the cut, India still remains one of the fastest-growing major economies.
The UN Department of Economic and Social Affairs said higher energy prices, inflation pressure, and tighter global financial conditions could slow growth. India depends heavily on energy imports, which increases risks during global conflicts.
UN officials added that strong consumer demand, public investment, and services exports continue to support the Indian economy. They expect these sectors to help India maintain steady growth in the coming years.
The report also warned that rising freight and fuel costs may impact exports and business expenses worldwide. Global GDP growth for 2026 now stands at 2.5%, lower than earlier estimates.
