The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) said in the report released Monday that economies in South and South-West Asia grew by 5.4% in 2025, compared to 5.2% in 2024, driven largely by strong growth in India.
India’s growth edged up to 7.4% in 2025, “supported by robust consumption, especially from the rural economy along with goods and services tax rate cuts, and export frontloading ahead of the United States’ tariffs,” the report, titled Economic and Social Survey of Asia and the Pacific 2026, said.
It said in India, economic activities moderated in the second half of 2025 as exports to the United States declined by 25 per cent following the introduction of 50 per cent tariffs in August 2025. The services sector remained a key growth driver.
The report projected India to register a 6.4 per cent growth rate in 2026 and 6.6 per cent next year. Inflation for the country is projected to be 4.4 per cent this year and 4.3 per cent in 2027.
 said in the report released Monday that economies in South and South-Wes){kind=link}