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India Economic Growth : India remains strong despite global recession; Fastest economy in 2026-27

Even as the global economy is expected to remain stable and somewhat slow in the coming period, India will maintain rapid economic progress, according to a firm prediction by leading investment bank Goldman Sachs.

Varsha Bhasmare

While the growth of the global economy is expected to remain stable and somewhat slow in the coming period, India will maintain rapid economic progress, according to a firm prediction by leading investment bank Goldman Sachs. According to their latest report, global economic growth is expected to be around 2.8 percent in 2026. This rate is higher than the long-term inclusive forecast of 2.5 percent. This growth will be possible due to stabilizing inflation, easy economic policies, and gradual improvements in the global economic situation, as noted in the report.

According to Goldman Sachs, due to fee reductions, tax incentives, and favorable economic policies, the performance of the United States may remain better than expected. Strong domestic demand and positive structural trends will boost the American economy. However, it is also predicted that other emerging markets, including India, will perform better compared to developed countries.

India's real Gross Domestic Product (GDP) growth rate is expected to be around 6.7% in 2026 and 6.8% in 2027. This rate is significantly higher than the global average, highlighting India as one of the fastest-growing major economies in the world. Strong domestic consumption, a growing middle class, large-scale government investment in public infrastructure, and relatively limited impact from global trade disruptions are noted as the key factors behind India's rapid growth.

The report also states that by the end of 2026, price pressures are likely to ease in most economies. This situation will arise due to lower commodity prices, improved productivity, and reduced supply chain disruptions. This will allow central banks in many emerging markets to adopt easier or favorable strategic roles, which could benefit the growth of countries like India.

Meanwhile, China's economic growth is expected to be 4.8 percent in 2026 and 4.7 percent in 2027. While advanced economies like the United States and Europe are expected to have moderate growth, emerging economies like India will continue to make significant contributions to global economic expansion. Overall, despite the backdrop of global uncertainty, this report highlights that India's economy is stable and strong.

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