
Summary:
According to the World Bank, India is projected to grow at 6.7% in FY26, maintaining its position as the fastest-growing major economy for the second consecutive year. The services sector is expected to expand steadily, while manufacturing will benefit from improved logistics infrastructure and tax reforms. Private spending is likely to rise, driven by a stronger labour market, expanding credit, and declining inflation. Investment growth remains solid, supported by robust corporate finances.
The global economy is forecasted to grow by 2.7% annually in 2025 and 2026, similar to 2024, as inflation and interest rates decline. Developing economies are expected to grow at 4%, though they face challenges such as high debt, weak investment, and the impacts of climate change. South Asia, particularly India, is anticipated to adopt stricter fiscal policies and achieve lower deficits due to rising tax revenues. Risks include higher commodity prices, trade barriers, and natural disasters, though India’s reforms strengthen its long-term prospects.
Source: IBEF
Disclaimer: The information on this website comes from the India Brand Equity Foundation (IBEF), a reliable source for thorough insights into numerous areas of the Indian economy. While we aim to offer accurate and up-to-date information, the views, opinions, and analyses stated herein are solely those of the authors and contributors and do not necessarily represent IBEF's official stance or position. Readers should check information from credible sources and use their own discretion when relying on content provided on this site. We assume no responsibility or liability for the supplied content, including its accuracy, completeness, and usefulness.