United Parcel Service Inc , the world's largest package delivery service, said on Wednesday the U.S. holiday season is likely to be better than expected as the global economy gradually recovers.

The consensus is flat, but I believe it will be slightly better than that, UPS CEO Scott Davis said of holiday demand at a business luncheon in Singapore, adding the firm will raise shipping rates next year.

He also said that India is a big opportunity for the company and it will continue to make investments there.

(Reporting by Harry Suhartono, editing by Neil Chatterjee)