India projected to grow at 6.6%, resilient consumption, public investment to offset US tariffs impact: UN
United Nations, Jan 9 (PTI) India is projected to grow at 6.6 per cent in 2026, registering an “exceptionally high growth in a challenging global environment”, with resilient private consumption and strong public investment largely offsetting the impact of high US tariffs, the United Nations has said.
The World Economic Situation and Prospects 2026 report released on Thursday by the UN Department of Economic and Social Affairs said that economic growth in India is projected to “moderate” from an estimated 7.4 per cent in 2025 to 6.6 per cent this year. India will remain the world’s fastest major economy, it said.
“Resilient private consumption, strong public investment, recent tax reforms, and lower interest rates are expected to support near-term growth. However, higher US tariffs could weigh on export performance in 2026 if current rates persist, as the US market accounts for about 18 per cent of total exports from India,” the report said.
It added that while tariffs may adversely affect some product categories, key exports such as electronics and smartphones are expected to remain exempt.
“Moreover, strong demand from other major markets, including Europe and the Middle East, is projected to partially offset the impact,” it said, adding that on the supply side, continued expansion in manufacturing and services sectors will remain a key driver of growth throughout the forecast period.
The report stressed that India’s growth will be supported by resilient consumption and strong public investment, which “should largely offset the adverse impact of higher US tariffs”.
“Recent tax reforms and monetary easing should provide additional near-term support,” it added.
