On one hand, amidst the tension between America and Iran, there is an atmosphere of fear and terror in the economy all over the world. At the same time, the confidence of foreigners on India's growth is continuously increasing. Be it the World Bank or the big rating agencies of America. Everyone has acknowledged the iron power of India. Meanwhile, the United Nations has also expressed confidence in the growth of the Indian economy.
The United Nations believes that India's economy is expected to grow at the rate of 6.4 percent this year and 6.6 percent in 2027. This was said in a United Nations report. The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) said in a report released on Monday that the economies of South and South-West Asia will grow at a rate of 5.4 percent in 2025 while the growth rate in 2024 was 5.2 percent. India's strong growth had a major contribution in this.
India's economy will see rapid growth next year
The report titled Economic and Social Survey of Asia and the Pacific 2026 said that India's growth rate is expected to increase to 7.4 percent in 2025. This was supported by strong consumption, especially demand from the rural economy, cut in Goods and Services Tax (GST) rates and a pick-up in exports ahead of the implementation of US tariffs. The report said economic activity in India slowed in the second half of 2025 as exports to the US declined by 25 per cent after the imposition of 50 per cent tariffs in August 2025. The services sector remained the key growth driver. It is estimated that India will grow at the rate of 6.4 percent in 2026 and 6.6 percent next year. Inflation in the country is expected to be 4.4 percent this year and 4.3 percent in 2027.
Why is there confidence in India's growth
The report said that the flow of foreign direct investment (FDI) in developing Asian and Pacific economies has decreased amid trade tensions and geopolitical uncertainties. After a 0.6 percent increase in 2024, FDI in the region declined by 2 percent in 2025, while global inflows increased by 14 percent. It said that the countries in the Asia-Pacific region attracted the most new foreign direct investment in the first three quarters. They are India, Australia, Republic of Korea and Kazakhstan, where investments of $50 billion, $30 billion, $25 billion and $21 billion were announced respectively. The report said that personal remittances sent by workers in Asia and the Pacific working outside their countries have been continuously increasing, which has helped in reducing the impact of weak domestic employment conditions. It also cited International Renewable Energy Agency (IRENA) estimates that there were about 16.6 million green jobs globally and about eight lakh new jobs would be created every year between 2012 and 2024, representing a seven per cent annual growth.
Employment opportunities are also available
Of these 1.66 crore jobs, 73 lakh were created in China, 13 lakh in India and 25 lakh in other parts of Asia, which are 44 percent, 8 percent and 15 percent respectively of the global total. It also said that governments can use the energy transition to promote new domestic industries and create supporting clusters towards an environmentally sustainable economy. It cited India's production-linked incentive (PLI) scheme as demonstrating how macroeconomic policies and incentives for domestic manufacturing of photovoltaics, batteries and green hydrogen can promote green industrial growth. Also, by reducing import dependence, it can create new industrial stakeholders who have a stake in maintaining this transformation.
