NEW DELHI — 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.
