India is projected to remain the world’s fastest-growing major economy, as per the World Bank’s latest Global Economic Prospects report. The Bank raised India’s growth forecast for 2026 to 6.6% and for 2027 to 7.2%, citing strong domestic demand and economic resilience. World Bank Deputy Chief Economist Ayhan Kose highlighted India as the fastest-growing large economy globally.
The report forecasts South Asia to be the fastest-growing region in 2026, with India’s economic fundamentals providing support despite global uncertainties. India’s policy measures and dynamism have been commended by the World Bank. The conflict in the Middle East is expected to slow global growth, with India being one of the few major economies receiving an upgrade.
India’s economic outlook is driven by a rebound in domestic demand and exports, leading to the upward revision in growth projections. South Asia’s growth is expected to recover to 6.9% in 2027, with India forecasted to grow at 7% in 2028. The World Bank warns of challenges for emerging economies due to higher energy and fertiliser prices triggered by the Gulf conflict.
