India continues to outpace global peers on economic growth: Centre
As the fastest-growing large economy, with steady growth projected at 6.7 per cent over the next two fiscal years, India continues to outpace global peers and cement its position as a leader in economic resilience and progress, the government said on Saturday.
The January 2025 edition of the World Bank’s Global Economic Prospects (GEP) report projects India's economy to grow at a steady rate of 6.7 per cent in both FY26 and FY27, significantly outpacing global and regional peers.
At a time when global growth is expected to remain at 2.7 per cent in 2025-26, this remarkable performance underscores India’s resilience and its growing significance in shaping the world’s economic trajectory, said Ministry of Information and Broadcasting.
The GEP report credits this extraordinary momentum to a thriving services sector and a revitalised manufacturing base, driven by transformative government initiatives.
From modernising infrastructure to simplifying taxes, these measures are fuelling domestic growth and positioning India as a cornerstone of global economic stability.
“With its closest competitor, China, decelerating to 4 per cent growth next year, India’s rise is more than just a statistic. It is a powerful story of ambition, innovation, and unmatched potential,” the ministry noted.
Complementing the World Bank report, the latest update from the International Monetary Fund’s (IMF) World Economic Outlook (WEO) also reinforces India’s strong economic trajectory.
The IMF forecasts India's growth to remain robust at 6.5 per cent for both 2025 and 2026, aligning with earlier projections from October.
This consistent growth outlook reflects India’s stable economic fundamentals and its ability to maintain momentum despite global uncertainties.
“The continued strength of India’s economic performance, as projected by both the World Bank and IMF, underscores the country’s resilience and highlights the sustained strength of its economic fundamentals, making India a crucial player in the global economic landscape,” the government emphasised.
Growth in India’s services sector is expected to remain robust, while manufacturing activity will strengthen, supported by government efforts to improve logistics infrastructure and streamline tax systems.
Private consumption in India is likely to gain momentum, driven by a stronger labour market, increased access to credit, and lower inflation.
