According to the World Bank’s January 2025 Global Economic Prospects (GEP) report, India is set to maintain a 6.7% growth rate for the financial years 2025-26 and 2026-27, continuing as the fastest-growing economy globally. This growth is significantly higher than the global average of 2.7%, underlining India’s economic resilience and its increasing global influence.
Key drivers of this growth include advancements in the services and manufacturing sectors, infrastructure development, tax reforms, and government initiatives such as the Production Linked Incentive (PLI) scheme. Other contributing factors are increased private consumption, easier access to credit, and low inflation levels.
India’s growth outpaces major competitors like China, whose economy is projected to grow at just 4%. The IMF’s World Economic Outlook report echoes similar confidence, estimating India’s growth at 6.5%, underscoring its economic stability and potential.
Government programs like PM Gati Shakti Master Plan and Startup India are fostering innovation, creating employment opportunities, and boosting private investment. Improvements in corporate balance sheets and fiscal policies are further enhancing economic prospects.
Emerging economies are playing an increasingly pivotal role in the global GDP, with their share rising from 25% in 2000 to 45% today. India’s achievements highlight the impact of visionary policies and a commitment to inclusive growth.
