UN Projects India's GDP Growth to Slow Amid US Tariffs, Domestic Strength to Cushion Blow

• UN projects India's GDP growth to moderate to 6.6% in 2026 from 7.4% in 2025.
• The moderation is primarily due to 50% tariffs imposed by the United States on India’s exports.
• Resilient consumption, strong public investment, tax reforms, and monetary easing are expected to offset tariff impact.
• US tariffs could weigh on export performance as the US market accounts for 18% of India's total exports, though electronics may be exempt.
• Strong demand from Europe and the Middle East, along with manufacturing and services expansion, will support growth.

Why It Matters: India's GDP growth is set to moderate due to US tariffs, but strong domestic factors will provide crucial support.