India to Remain World’s Fastest-Growing Major Economy: World Bank...
NEW DELHI: India is set to maintain its position as the world’s fastest-growing large economy. The World Bank’s latest Global Economic Prospects (GEP) report predicts a growth rate of 6.7% for India in FY26 and FY27. This is significantly higher than the global growth forecast of 2.7% for 2025-26.
The report highlights India's robust services sector and strengthening manufacturing base. It credits government initiatives like infrastructure upgrades and tax reforms for driving growth. China, India’s closest competitor, is projected to grow at only 4% in 2025, making India a standout performer.
The International Monetary Fund (IMF) has echoed these projections. The IMF forecasts a 6.5% growth rate for India in 2025 and 2026. The Ministry of Finance stated, "This reflects India's economic resilience despite global challenges."
Major Insights from the World Bank Report
1. India will remain the fastest-growing large economy in FY26 and FY27.
2. Growth in India’s services and manufacturing sectors will drive this momentum.
3. Private consumption is expected to rise due to job creation, better credit access, and low inflation.
4. Investment growth will remain steady, supported by private investments and corporate stability.
5. Global growth will hover at 2.7%, highlighting India’s outperformance.
Transformative Government Initiatives
The government attributes this growth to visionary schemes. PM GatiShakti has improved infrastructure. The Production Linked Incentive (PLI) scheme is boosting manufacturing. Initiatives like Startup India and the digital economy push are fostering innovation.
A finance ministry official said, "India’s economic reforms are ensuring inclusive and sustained growth."
India's Growing Global Role
Emerging markets now contribute 45% to global GDP, up from 25% in 2000. India, China, and Brazil have driven 60% of annual global growth since the start of the century.
India’s ambition, innovation, and resilience are setting it apart. The Goods and Services Tax (GST) has unified the market. PLI and digital initiatives are bolstering manufacturing and entrepreneurship.
With steady growth projected, India is shaping the future of the global economy. "India’s story is one of resilience and strategic governance," the government emphasized.
