United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) projects India's economy to grow at 6.4% in 2026 and 6.6% in 2027

Key facts

• The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) released the Economic and Social Survey of Asia and the Pacific 2026.
• India's economy is projected to grow at 6.4% in 2026 and 6.6% in 2027.
• India's growth rate for 2025 was 7.4%, supported by rural economy consumption, goods and services tax rate cuts, and export frontloading.
• Inflation in India is projected to be 4.4% in 2026 and 4.3% in 2027.
• Economies in South and South-West Asia grew by 5.4% in 2025 and 5.2% in 2024.
• India's exports to the United States declined by 25% in the second half of 2025 following the introduction of 50% tariffs in August 2025.
• India attracted the largest share of greenfield Foreign Direct Investment (FDI) in the first three quarters with $50 billion, followed by Australia ($30 billion), Republic of Korea ($25 billion), and Kazakhstan ($21 billion).
• India was the world's largest remittance recipient in 2024 with $137 billion.
• The United States has levied a 1% tax on all remittances since January 2026.
• The International Renewable Energy Agency (IRENA) estimated that India has 1.3 million green jobs, which is 8% of the global total of 16.6 million.
• India's Production Linked Incentive (PLI) scheme provides incentives for domestic manufacturing of solar photovoltaic, batteries, and green hydrogen.