India Set to Lead Global Economic Growth by 2026, Says WEF Report

A recent report by the World Economic Forum (WEF) indicates that India is projected to be the principal force driving global economic growth in the years 2025 and 2026. Based on a survey of leading economists, the WEF's Chief Economists Outlook credits India's robust economic fundamentals and positive outlook as key factors despite worldwide uncertainties.

The International Monetary Fund forecasts that India's GDP will grow by 6.2 percent in 2025 and 6.3 percent in 2026, securing its position as the fastest-growing major economy in South Asia. This anticipated growth underscores India's central role in the region's economic dynamics, as the report notes the resilience of South Asia in the face of challenges like rerouted Chinese exports.

Recent indicators, such as the purchasing managers' index (PMI), have revealed better-than-expected performances, particularly in new export orders, indicating a strong demand for the region's goods and services. The WEF also pointed out the potential benefits of a newly signed trade agreement between India and the United Kingdom, which could further enhance trade prospects and solidify economists' confidence in the region's economic vitality.

South Asia stands out globally as the most promising region, with a third of economists anticipating strong growth through 2025. However, the region faces uncertainties, such as mounting military tensions between India and Pakistan. On a broader scale, the report highlights fragile global economic conditions and significant changes in US economic and trade policies, casting a shadow over the international economic landscape.

The US's recent tariff increases, paused temporarily, have heightened economic tensions worldwide. Nevertheless, India's strong economic indicators, favorable trade conditions, and increasing investor confidence paint a positive economic outlook for the country and South Asia, despite rising inflation and global uncertainties.

(With inputs from agencies.)