UNDESA lowers India’s GDP forecast to 6.4% (FY27)

UNDESA lowers India’s GDP forecast to 6.4% (FY27)

• What: UNDESA’s World Economic Situation and Prospects 2026 revised India’s GDP forecast for FY27 to 6.4% (from 6.6% earlier) citing global uncertainties and West Asia crisis; FY28 forecast 6.6%; inflation for FY27 at 4.9%.

• Significance:

  • External shocks: Shows sensitivity to geopolitical tensions and energy price shocks.

  • Policy implications: Need for resilient growth drivers and macro policy calibration.

• UPSC relevance: Macroeconomic forecasting, effects of geopolitics on growth.

• Possible Q: Examine how external geopolitical shocks affect India’s growth outlook and policy responses.