India’s economy projected to grow at 6.4% this year and 6.6% in 2027

India’s economy is projected to grow at 6.4% this year and 6.6% in 2027, according to a report by the United Nations. The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) said in the report released yesterday that economies in South and South-West Asia grew by 5.4% in 2025, compared to 5.2% in 2024, driven largely by strong growth in India.
India’s growth edged up to 7.4% in 2025, supported by robust consumption, especially from the rural economy, along with goods and services tax rate cuts and export frontloading ahead of the United States’ tariffs.
The report, titled Economic and Social Survey of Asia and the Pacific 2026, projected India to register a 6.4% growth rate in 2026 and 6.6% next year. Inflation for the country is projected to be 4.4% this year and 4.3% in 2027.
It also cited estimates by the International Renewable Energy Agency (IRENA) that suggested that there were around 16.6 million green jobs globally, with annual job creation of around 0.8 million between 2012 and 2024, a 7% annual growth. The report said that India’s production-linked incentive scheme illustrates how macroeconomic policy can foster green industrial development through incentives for domestic manufacturing of solar photovoltaic, batteries and green hydrogen, reducing import dependence while creating new industrial beneficiaries with a vested interest in sustaining the transition.