Why in the news
UNESCAP published its Economic and Social Survey of Asia and the Pacific 2026. It calls India a strong regional performer but expects the West Asia conflict to moderate growth and push up inflation in the coming fiscal year.
Key facts
| Fiscal year | GDP growth | CPI inflation |
|---|
| FY26 (estimate) | 7.4% | 2.3% |
| FY27 (projection) | 6.4% | 4.4% |
| FY28 (projection) | 6.6% | 4.3% |
- Headwind: the conflict involving Iran has disrupted energy supplies and global confidence, raising production costs and straining the fiscal position.
- Recovery: FY28’s rebound rests on domestic consumption and a resilient services sector, a cushion against weak manufacturing worldwide.
- Inflation: nearly doubles to 4.4% in FY27 but stays within the RBI’s 2%-6% tolerance band.
How other agencies compare for FY27
| Institution | Growth forecast |
|---|
| RBI | 6.9% |
| Asian Development Bank | 6.9% |
| World Bank | 6.6% |
| UNESCAP | 6.4% |
About
- UNESCAP: UN Economic and Social Commission for Asia and the Pacific, the most inclusive intergovernmental platform of the region, working on sustainable development and economic cooperation.
- Base year: India recently moved its GDP base year to 2022-23 so data reflects the current economy.
- Real GDP: output adjusted for inflation, showing true growth in volume.
Exam angle
- Report: Economic and Social Survey of Asia and the Pacific 2026.
- Numbers: 6.4% growth and 4.4% inflation for FY27.
- Compare agencies: UNESCAP is the most cautious of the four.