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UN Report Sees India Leading Growth on Domestic Demand, Infrastructure
A United Nations report says India is expected to grow faster than other major economies in 2026.
It forecasts India’s economy will grow by 7.3% that year and 6.8% in 2027.
People spending money, more manufacturing, and government infrastructure projects are expected to help.
The report also says India’s household spending growth will slow compared with earlier years.
Higher prices and costs are among the reasons it gives for that slowdown.
The world economy is forecast to grow more slowly, at 2.6% in 2026.
Developing economies overall are also expected to grow more slowly than in 2025.
The report says Asian economies will account for a large share of global growth.
UNCTAD projects India’s economy to grow 7.3% in 2026 (FY27) and 6.8% in 2027 (FY28).
The report attributes India’s projected growth to domestic demand, expanding manufacturing capacity and public infrastructure programmes.
India’s household consumption is estimated to grow 6.9% in 2026 and 5.6% in 2027, a slowdown from previous years.
The report projects global growth of 2.6% in 2026 and developing-economy growth of 4%, down from 4.7% in 2025.
Asia is projected to contribute 59% of global growth in 2026; China is forecast to grow 4.5% and Indonesia 5.2%.
- Who
- UNCTAD, the United Nations trade and development body, made the projections; the report discusses India and other economies.
- What
- The report forecasts India’s GDP growth at 7.3% in 2026 and 6.8% in 2027.
- Where
- The report was presented in Geneva and discusses India and the global economy.
- When
- The projections were reported on Friday and cover 2026 and 2027.
- Why
- It cites robust domestic demand, increasing manufacturing capacity and public infrastructure programmes as supports for India’s growth.
Key facts
- India GDP growth forecast
- 7.3% in 2026 (FY27); 6.8% in 2027 (FY28)
- India household consumption growth
- Estimated at 6.9% in 2026 and 5.6% in 2027
- Global growth forecast
- 2.6% for 2026, compared with 2.9% in 2025
- Developing-economy growth forecast
- 4% in 2026, down from 4.7% in 2025
- Asia’s projected share of global growth
- 59% in 2026
- Digital public infrastructure cooperation
- India has agreements with 23 countries to share its architecture; technical cooperation is operational in eight
- Global trade
- Reached a record $35 trillion in 2025
Quotes
Pedro Manuel Moreno
UNCTAD's Acting Secretary General
“Rising economies of the Global South are becoming regional anchors, extending trade integration to new financial initiatives. This works best alongside a multilateral trading system that keeps non-discrimination and special and differential treatment at its core.”
thehansindia.com
Sources
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