India will remain the fastest growing major economy in the world. According to a report by the United Nations (UN), India’s GDP growth rate is estimated to be 7.3% in the financial year 2026-27. At the same time, the pace of the economy may be 6.8% in the financial year 2027-28.
The report cited strong domestic demand, increase in manufacturing capacity and government spending on public infrastructure as the reason for this. However, India’s heavy dependence on crude oil imports remains a challenge for the economy.
These estimates are given in the United Nations Conference on Trade and Development (UNCTAD) report Trade and Development Report 2026: The Geoeconomics of Development.
Domestic consumption supports the economy
According to the report, domestic consumption is playing an important role in the growth of the Indian economy. Domestic consumption in India is expected to grow by 6.9% this year and 5.6% next year.
However, the report also said that this pace of domestic consumption is slower than in previous years. Rising prices and rising costs of raw materials used in production are putting pressure on the pace of expansion.
That is, despite strong domestic demand, inflation and input costs can affect the growth of the economy.
India’s speed is expected to be higher than the world
UNCTAD has estimated the growth rate of the global economy to be 2.6% in 2026. In 2025 this rate was 2.9%.
At the same time, the growth rate of developing economies is estimated to be 4% this year, which is less than 4.7% in 2025.
According to the report, the difference in the pace of economic growth among developing countries is increasing. Large economies like India are supporting global growth, while countries dependent on oil imports face challenges such as fluctuating energy prices and rising debt servicing costs.
India’s model in digital payment and technology
India’s Digital Public Infrastructure (DPI) model has also been mentioned in the report. Under this, India has signed agreements with 23 countries to share information and technical models of its digital infrastructure.
According to the report, technical cooperation is already working in eight countries including Sri Lanka and United Arab Emirates (UAE).
The report said that making digital payment technology and infrastructure compatible with each other among developing countries can promote regional economic cooperation. For this, it is also important to share technical information instead of just one product.
Global trade to reach record level of $35 trillion in 2026
According to the report, global trade would reach a record level of $35 trillion by 2025. Trade in goods and services is projected to grow by about 4% at constant prices in 2026.
However, due to rising prices due to the energy crisis, the total value of trade is also increasing. Therefore, the increase in business value should not be seen only as an increase in actual turnover.
Pedro Manuel Moreno, Acting Secretary-General of UNCTAD, said that the emerging economies of the Global South are increasing their role as regional economic hubs. He said that to strengthen trade integration, such a multilateral system is necessary, in which the principles of non-discrimination and giving treatment to developing countries according to special circumstances are maintained.
Asia’s share in global growth is 59%
According to the report, Asia’s contribution to global economic growth in 2026 is estimated to be 59%. Among the major economies of the region, the growth rate of India is estimated to be 7.3%, China’s 4.5% and Indonesia’s 5.2%.
This report considers strong domestic demand, manufacturing capacity and public infrastructure as important bases for India’s economic growth. However, challenges like possible slowdown in the pace of domestic consumption, rising costs and dependence on crude oil imports will also have to be kept in mind.
Source: ndtv.in
