Economy, Banking and Finance · 21 May 2026

United Nations (UN) cuts India's 2026 GDP forecast to 6.4 per cent

Exam-focused facts from the 21 May 2026 current affairs briefing.

Key facts

  • The United Nations Department of Economic and Social Affairs (UN DESA) has revised India's economic growth forecast for 2026 to 6.4 per cent from an earlier projection of 6.6 per cent.
  • UN DESA projects India's economic growth to be 7.5 per cent in 2025 and 6.6 per cent in 2027.
  • The revision is attributed to global uncertainties and economic shocks from the West Asia crisis, resulting in higher energy import costs and tighter financial conditions.
  • India's growth is driven by consumer demand, public investment, and strong performance in services exports.
  • Global GDP growth for 2026 is forecast at 2.5 per cent, which is 0.2 percentage points below the January projection.