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United Nations. India’s economy is projected to grow at 6.4 percent this year and 6.6 percent in 2027. This was said in a United Nations report. The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) said in a report released on Monday that the economies of South and South-West Asia will grow at a rate of 5.4 percent in 2025 while the growth rate in 2024 was 5.2 percent. India’s strong growth was a major contributor to this.

The report titled ‘Economic and Social Survey of Asia and the Pacific 2026’ said India’s growth rate is projected to increase to 7.4 percent in 2025. This was supported by strong consumption, demand especially from the rural economy, cut in Goods and Services Tax (GST) rates and a pick-up in exports ahead of the imposition of US tariffs.

The report said economic activity in India slowed down in the second half of 2025 as exports to the US declined by 25 percent after the imposition of 50 percent duty in August 2025. The services sector remained the major growth driver. It is estimated that India will grow at the rate of 6.4 percent in 2026 and 6.6 percent the next year.

Inflation in the country is expected to be 4.4 percent this year and 4.3 percent in 2027. The report said that the flow of foreign direct investment (FDI) into developing Asian and Pacific economies has declined amid trade tensions and geopolitical uncertainties. After a 0.6 percent increase in 2024, FDI in the region declined by 2 percent in 2025 while global inflows increased by 14 percent.

“In the Asia-Pacific region, the countries that attracted the most new FDI inflows in the first three quarters… were India, Australia, the Republic of Korea and Kazakhstan… with investment announcements of $50 billion, $30 billion, $25 billion and $21 billion, respectively,” it said.

The report said personal remittances sent by workers in Asia and the Pacific working outside their countries continued to grow, which helped mitigate the impact of weak domestic employment conditions. It also cited International Renewable Energy Agency (IRENA) estimates that there were about 16.6 million green jobs globally and about eight lakh new jobs created per year between 2012 and 2024, representing seven per cent annual growth.

Of these 1.66 crore jobs, 73 lakh were created in China, 13 lakh in India and 25 lakh in other parts of Asia, which are 44 per cent, 8 per cent and 15 per cent respectively of the global total. “Governments can use the energy transition to foster new domestic industries and create supporting clusters toward an environmentally sustainable economy,” the report also said.

It cited India’s Production Linked Incentive (PLI) scheme and said it shows how macroeconomic policies and incentives for domestic manufacturing of photovoltaics, batteries and green hydrogen can promote green industrial growth. It can also reduce import dependence and create new industrial stakeholders who have a stake in sustaining this transformation.

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