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India’s GDP growth to slow to 6.4% in FY27 amid geopolitical headwinds: UN report

  • India's economy is projected to grow at 6.4% in 2026 and 6.6% in 2027, following a 7.4% growth in 2025, supported by strong rural consumption, tax cuts, and export frontloading before US tariffs caused exports to the US to fall by 25%.
  • Economic activity in India slowed in the second half of 2025, but the services sector remained a key growth driver despite this moderation.
  • Foreign direct investment to developing Asian economies, including India, declined by 2% in 2025 amid trade tensions and geopolitical uncertainties, even as global FDI increased by 14%.
  • India's Production Linked Incentive scheme promotes green industrial growth by incentivizing domestic manufacturing of solar photovoltaic, batteries, and green hydrogen, reducing import dependence.
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The Week broke the news on Tuesday, April 21, 2026.
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