India’s GDP Growth: UN Projects 6.4% Economic Growth This Year

Indian economy latest news: This year, the Indian economy is expected to climb 6.4 percent in 2026, and 6.6 percent in the following year (2027), United Nations report. Let’s know in detail further.

India’s GDP Growth: India Drives South Asia's Economic Growth to 5.4% in 2025

According to a Monday report of the United Nations Economic and Social Commission for Asia and the Pacific, South and South-West Asian economies increased to 5.4% in the previous year, a good jump from 5.2% in 2024. It signifies India's strong performance.

India's growth reached 7.4% in 2025, thanks to strong spending, especially from rural areas.

It was also helped by cuts in the goods and services tax and increased exports before the United States added tariffs, according to the Economic and Social Survey of Asia and the Pacific 2026.

The report said that in India, the economy slowed down in the second half of 2025 because exports to the United States dropped by 25% after new 50% taxes were introduced in August 2025.

However, the services sector kept growing and helped boost the economy.

India GDP Forecast 2026

India’s GDP Growth: The report projects that India will grow by 6.4 per cent in 2026 and 6.6 per cent in 2027. Inflation in the country is 2 per cent in 2027.

The report stated that foreign direct investment (FDI) in developing Asian and Pacific economies fell due to trade tensions and geopolitical uncertainty.

FDI in the region rose by 0.6% in 2024 but dropped by 2% in 2025, even though global FDI increased by 14%.

India’s GDP Growth: India Receives Greenfield FDI

According to a report, in the Asia-Pacific regions, many countries have got greenfield FDI or new investments.

The countries included are India, Kazakhstan, Australia and South Korea. They attracted investments of USD 50 billion, USD 30 billion, USD 25 billion, and USD 21 billion, respectively."

Remittances from Abroad Boost Household Spending Amid Job Struggles

The report also noted that personal remittances from Asian and Pacific workers abroad continued to increase, helping to offset weak job conditions at home.

Remittances have supported household spending for many families, but they now face challenges.

In India and the Philippines, about 40 percent of remittances are used by recipient households for essential expenses, such as medical costs.

India Might Face a Loss from US Remittance Tax Amid Green Job Growth

However, according to a report, as the world's largest remittance recipient, receiving USD 137 billion in 2024, India could face a massive loss due to a 1% tax on all remittances levied by the US from January this year.

Global Green Jobs Reach 16.6 Million with 7% Annual Growth

The report also referenced estimates from the International Renewable Energy Agency, which found there were about 16.6 million green jobs worldwide.

Around 8000 green jobs are reported to have been generated every year, from 2012 to 2024. This indicates a positive sign of 7% growth rate per year.

India Economy Growth: China, India, and Asia Drive 67% of Global Green Jobs

Out of the 16.6 million green jobs

• 7.3 million jobs are from China
• 1.3 million from India
• 2.5 million from other parts of Asia

These figures represent 44%, 8%, and 15% of the global total, respectively.

Among the 16.6 million green jobs, "Governments can leverage the energy transition to an environmentally sustainable economy to foster new domestic industries and build supportive constituencies," the report said.

According to a report, public investment and focused industrial policies can bring the possibility of generating the growth of renewable manufacturers, green industrial clusters, storage providers, and grid developers.

Indian Economy Forecast: India's PLI Scheme Boosts Green Industry Growth, Says Report

India’s GDP Growth: The report also stated India's production-linked incentive scheme as an example  defining how government policies can elevate the growth of the green industry.

This scheme plays a major role in promoting green hydrogen, solar panels, and batteries, and in cutting dependence on imports, instead helping generate new industries with a prime emphasis on the green transition.

In most developing countries in Asia and the Pacific, special plans are being implemented to build clean technology factories and accelerate the shift to cleaner energy.

Initiatives include India's Production Linked Incentive scheme for high-efficiency solar modules, China's strategic subsidies for electric vehicle battery manufacturing," the report said.