On Sunday, economists highlighted India’s economy is still on the fast‑lane, growing thanks to strong domestic spending, a rebound in manufacturing and a steady rise in services. The latest figures from the International Monetary Fund (IMF) paint an optimistic picture, confirming India’s spot as the world’s fastest‑growing major economy.
India to taste 6.6% growth in 2026
The IMF’s newest projections show India’s GDP expected to expand at 6.6 % in 2026, keeping it ahead of other large economies. By comparison, China’s growth is forecast to slow to 4.8 % over the same period. “The numbers are very positive,” said Dr. Manoranjan Sharma, chief economist at Infomerics Ratings. “India will grow 6.6 % next year while China’s growth will be only 4.8 %.”
Three key drivers of India’s momentum
Dr. Sharma explained India’s steady growth is backed by three main forces:
- Rising domestic consumption – household spending continues to rise.
- Manufacturing revival – factories are producing more goods.
- Strong services sector – the services branch is keeping pace.
These factors help India maintain a growth edge even as global expansion slows.
Global slowdown keeps India in the lead
The IMF’s “World Economic Outlook” reports that the world economy grew at 3.3 % in 2024 but will moderate to 3.2 % in 2025 and 3.1 % in 2026. The slowdown is partly blamed on tariff measures introduced by former U.S. President Donald Trump, disrupting trade flows. Advanced economies are expected to grow just 1.6 %, while developing nations like India grow around 4.2 %. The U.S. will grow 1.9 % next year, down from 2.4 % in 2024, and Spain may be the fastest‑growing advanced economy at 2.9 %.
China’s challenges vs. India’s strengths
China is facing structural hurdles—aging demographics, high debt and a struggling real‑estate market—dragging down its growth. In contrast, India’s momentum stems from structural reforms, consistent consumption growth and heavy investment in infrastructure.
Growth’s next step: inclusive development
Economists warn that India must now turn its economic expansion into widespread benefits. “India must use this period to boost jobs, cut poverty and invest in infrastructure, education and healthcare,” Dr. Sharma said. “The next few years will be critical for turning growth into long‑term gains—through higher productivity, better labour absorption and a focus on skill development.”
By combining rapid growth, rising investment and a focus on inclusive development, India solidifies its role as a key global economy and a magnet for foreign direct investment and portfolio inflows.
Source: ianslive
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