According to Goldman Sachs’ Global Economics Analyst Report, Global Economic Outlook, 2026, while the overall global economy will maintain steady growth through 2026, India remains one of the most rapidly growing among large, developed Markets and is likely to remain one of the fastest growing among emerging markets. Projecting a Global Gross Domestic Product (GDP) growth to be at 2.80% for 2026, up slightly from 2.50%, based on the expectation of continued easing of inflation expectations, continued lowered interest rates, improved financial stability in many other developed economies and strong trends toward recovery, plus job growth across the major industrial sectors in the Industrial Sector of the Global Growth Economy; the U.S. should outpace all other developed markets to be around 2.60% up to 2.50% in 2026 due to the benefit from reductions in Tariff pressures (Tariff and Excise taxes are expected to have decreased in 2026) and increased investment opportunities resulting from Tax Reform legislation and more accommodating monetary conditions. Emerging markets, in general, are better positioned to outperform Developed Markets, as they benefit from a much stronger base. Emerging Markets have shown that most of their growth has resulted from continued strong domestic demand and favourable structural conditions for long-term development.
According to Goldman Sachs, India will remain one of the most significant drivers of global growth among emerging markets. By 2026, India's RGDP growth is expected to reach 6.7% and by 2027, it will likely be around 6.8%. Both figures are significantly higher than the worldwide average and well above what most analysts expect. Factors contributing to India's strong growth include, domestic demand, continued improvements in the country's public infrastructure, and no greater risk of disruption from a decrease in global trade than in countries where exports make up a significant portion of their total production.
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