Indian Economy / India Retains Fastest-Growing Major Economy Tag Amid Global Slowdowns

New Delhi, Oct 24: Even as global growth is projected to slow from 3.5 per cent in 2025 to 3.1 per cent in 2026, India’s economy has continued to expand steadily despite geopolitical tensions, volatile energy prices, trade uncertainty and tighter financial conditions, according to a new report.

The report, published in Tanzania-based The Guardian (IPP Media), said upward revisions by major global institutions have reinforced India’s position as a leading global growth engine. It noted that export diversification, digital transformation, fiscal discipline and energy security would strengthen competitiveness and support long-term, inclusive growth.

Strong domestic base

The International Monetary Fund (IMF) recently raised India’s growth forecast to 7 per cent for both 2026 and 2027, retaining the country’s position as the fastest-growing major economy. The Fund attributed the outlook to resilient domestic demand and robust services activity.

According to the report, India’s large and diversified domestic market remains a principal source of economic strength. Household consumption, business investment and public spending on infrastructure together create a broad base of activity, helping cushion the economy when external demand weakens.

Private consumption continues to drive sectors such as automobiles, housing, tourism, healthcare and finance. Rising incomes, urbanisation, digital access and improved connectivity are expanding demand and encouraging business investment and innovation.

Digital and infrastructure push

The rapid adoption of digital platforms has transformed economic participation across the country. Digital payments, online commerce, digital public infrastructure and technology-enabled government services have lowered transaction costs and widened market access, enabling small businesses to reach customers beyond their immediate areas.

Investment in transport, logistics, power and digital connectivity is also strengthening resilience by reducing costs and improving the movement of goods and services.
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India’s exports are expected to touch $1 trillion in 2026-27, an all-time high, with a target of $2 trillion by 2030. The manufacturing sector grew by 9.2 per cent in the first quarter of FY27.

The report said India’s economic landscape reflects remarkable adaptability, supported by strong domestic fundamentals and proactive policy management amid global volatility.
(With inputs from IANS)