UN Report: India’s economy projected to grow at 6.4% in CY26, 6.6% in CY27

Current Context: The United Nations ESCAP’s flagship report, Economic and Social Survey of Asia and the Pacific 2026, was released on 20 April 2026 at UN Headquarters, New York.

• It projects India’s economy to grow at 6.4% in 2026 and 6.6% in 2027, with inflation expected at 4.4% and 4.3% respectively.
• The report highlights rural and urban consumption, GST rate cuts, and services sector resilience as key growth drivers.
• It also notes India’s green transition policies such as the PLI scheme in solar, batteries, and hydrogen, creating over 1.3 million green jobs.
• Risks include 50% US tariffs (Aug 2025), a 1% US remittance tax (Jan 2026), regional FDI slowdown, and geopolitical conflicts.
• Despite challenges, India attracted $50 billion in greenfield FDI in 2025, the highest in Asia-Pacific, and remained the largest remittance recipient ($137 billion in 2024).
• Regionally, Asia-Pacific grew 5.4% in 2025, and the report stresses balancing economic prosperity with environmental sustainability.

Question:

Q.1 According to the Economic and Social Survey of Asia and the Pacific 2026, what is India’s projected GDP growth rate for 2026?
a) 5.8%
b) 6.0%
c) 6.4%
d) 7.0%

Answer: c) The report projects India’s GDP growth at 6.4% for 2026.