India Poised to Power Global Economy in 2025–2026, Says World Economic Forum
- Melissa Santañez
- Jun 4
- 2 min read
India is poised to be the primary engine of global economic growth in 2025 and 2026, according to the World Economic Forum (WEF). This projection is underpinned by India's robust domestic demand, expanding digital infrastructure, and resilient economic fundamentals, positioning it ahead of other major economies in driving global growth momentum.
📈 Economic Growth Projections
World Economic Forum (WEF): India is expected to be the primary engine of global economic growth in 2025 and 2026, highlighting its robust economic trajectory and growing influence in the global marketplace.
International Monetary Fund (IMF): Projects India's GDP to grow at 6.2% in 2025 and 6.3% in 2026, maintaining its status as the fastest-growing major economy globally.
Organisation for Economic Co-operation and Development (OECD): Forecasts a 6.3% growth rate for India in FY2026, emphasizing its capacity to sustain economic momentum amid global uncertainties.
🏗️ Key Drivers of India's Economic Momentum
1. Strong Domestic Demand
India's large and youthful population continues to drive consumption, bolstering sectors like construction and manufacturing. In the January-March 2025 quarter, the economy grew by 7.4%, surpassing expectations and marking the highest quarterly growth since early 2024.
2. Expanding Digital Infrastructure
Investments in digital infrastructure, including the growth of data centers and advancements in artificial intelligence, are enhancing productivity and creating new economic opportunities. India's data center capacity is projected to nearly double by 2026, reflecting the country's digital transformation.
3. Monetary Policy Support
The Reserve Bank of India (RBI) is anticipated to implement a third consecutive interest rate cut, potentially reducing the repo rate to 5.75%, in response to low inflation rates. This monetary easing aims to stimulate further economic growth.
4. Resilience Amid Global Challenges
Despite global economic headwinds, including trade tensions and policy uncertainties, India's economy remains resilient. The WEF's Chief Economists Outlook report underscores India's robust economic trajectory and its growing influence in the global marketplace.
sources: Times of India, The Tribune, The Economic Times, Reuters
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