New Delhi, April 21 -- The Indian economy is expected to grow 6.4% in FY27, slower than the 7.4% expansion estimated for FY26, owing to headwinds from the West Asia conflict, a UN Report said on Tuesday.

The 'Economic and Social Survey of Asia and the Pacific 2026' report by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) projected that India's GDP growth would pick up moderately to 6.6% in FY28, driven by domestic demand and services.

Global uncertainties and energy supply disruptions are expected to drive up inflation in India. According to the report, the country's inflation rate is projected to rise from 2.3% in FY26 to 4.4% in FY27, before easing slightly to 4.3% in FY28. Even at these levels, I...