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India to see economic expansion of 6.6% in 2026: United Nations
Jan-09-2026

Trade barriers from the United States are emerging as a headwind for India’s growth prospects, which has been come to see in the United Nations’ (UN) latest report titled ‘World Economic Situation and Prospects 2026’. UN has predicted that Indian economic growth is likely to slow from an estimated 7.4 per cent in 2025 to 6.6 per cent in 2026. 

As per the report, higher United States tariffs could weigh on export performance in 2026 if current rates persist, as the United States market accounts for about 18 per cent of total exports from India. It said tariffs may adversely affect some product categories, but key exports such as electronics and smartphones are expected to remain exempt.

Though, UN expects resilient private consumption, strong public investment, recent tax reforms, and lower interest rates to support near-term growth. Moreover, strong demand from other major markets, including Europe and the Middle East, is projected to partially offset the impact. On the supply side, continued expansion in manufacturing and services sectors will remain a key driver of growth throughout the forecast period.

On labour market, United Nations has said that in India, employment indicators remained broadly stable in 2025. The unemployment rate stood at 5.2 per cent in October 2025, compared with 4.9 per cent in 2024, while the labour force participation rate edged up in both rural and urban areas during the second half of the year. On the global front, it noted that the global economic outlook remains clouded by elevated macroeconomic uncertainties, shifting trade policies, and persistent fiscal challenges. Geopolitical tensions and financial risks add to these pressures, leaving the global economy fragile.

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