The most recent International Monetary Fund (IMF) statistics show a promising future for India, solidifying its position as the world’s fastest-growing major economy.
According to the IMF’s data, the country’s economy is expected to grow at 6.6 per cent in 2026, maintaining its lead among large economies. In contrast, China’s growth rate is forecast to slow to 4.8 per cent during the same period.
According to IMF projections, the global economy, which expanded by 3.3 per cent in 2024, will slow to 3.2 per cent in 2025 and 3.1 per cent in 2026.
US President Donald Trump’s tariff policies, which have hampered international trade flows, have been partially blamed for the downturn.
The IMF’s ‘World Economic Outlook’ report projects that advanced economies will grow by just 1.6 per cent, while developing economies are expected to expand by 4.2 per cent.
The US economy is forecast to grow at 1.9 per cent, down from 2.4 per cent in 2024, while Spain is expected to be the fastest-growing advanced economy at 2.9 per cent.
The report also highlights that China’s economic momentum is weakening due to structural challenges, including demographic shifts, high debt levels, and continued pressure in the real estate sector.
In contrast, India’s growth story is underpinned by structural reforms, steady consumption growth, and major investments in infrastructure.
Economists believe India’s sustained momentum enhances its attractiveness for foreign direct investment (FDI) and portfolio inflows, strengthening its global economic standing and geopolitical influence.
However, they caution that the country must now translate this growth into inclusive development.
“India must seize this opportunity to accelerate job creation, reduce poverty, and invest in infrastructure, education, and healthcare,” Dr. Sharma noted.
“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,” he added.