The Indian economy is expected to grow at a rate of 6.4 percent this year on the back of robust domestic demand and favourable policy decisions despite the impact of the war, the United Nations said in a report.
For 2027, the Indian economy may accelerate further to grow at a rate of 6.6 percent, forecast the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in its report titled Economic and Social Survey of Asia and the Pacific 2026.
The report said that the Asian region grew by 5.4 percent last year compared to 5.2 percent in 2024. This growth was driven largely by strong growth in India, which grew by 7.4 percent in 2025, and improved macroeconomic stability in Pakistan and Sri Lanka, it added.
For the global economy, the growth rate may be impacted due to the war.
“The rate of global economic growth is projected to decline slightly in the near term to 2.7 percent in 2026, which is lower than 2.8 percent in 2025, before edging up to 2.9 percent in 2027,” the report said.
The report also highlighted the importance of the West Asian war in terms of energy supplies and inward remittances for Asian countries.
Money sent by Asian workers from the Middle East has helped cushion the economic impact of vulnerable domestic employment conditions.
“In India and the Philippines, about 40 percent of the transfers (remittances) are used for essential spending, including medical expenses, of recipient households,” the report said.
However, India, the world’s largest remittance recipient with $137 billion in 2024, could face challenges on this front after the United States imposed a 1 percent tax on such transfers from January 2026.
On the positive front, various trade agreements signed by India would help raise trade, supporting local growth.
