India is on track to remain the world’s fastest-growing large economy for the next two years, with the World Bank projecting a 6.7% growth rate for both FY26 and FY27. This growth is far higher than the global average of 2.7% and showcases India’s economic strength and resilience.
Why India is Growing Faster
The World Bank’s Global Economic Prospects (GEP) report credits India’s success to:
- A booming services sector.
- Growth in manufacturing, supported by government initiatives like Startup India and the Production Linked Incentive Scheme.
- Modern infrastructure development under programs like PM GatiShakti.
India’s nearest competitor, China, is expected to grow only by 4%, further highlighting India’s rise.
International Confidence in India
The International Monetary Fund (IMF) also predicts robust growth for India, forecasting a rate of 6.5% for 2025 and 2026. Both the World Bank and IMF highlight India’s stable policies and ability to maintain growth despite global challenges.
Driving Factors Behind India’s Growth
Government initiatives have played a big role:
- Simpler taxes with GST.
- Digital transformation in the economy.
- Manufacturing push through incentive schemes.
These steps have helped India build a self-reliant, competitive, and resilient economy.
Conclusion
India’s consistent growth at 6.7% is not just a number – it’s a reflection of its strength, ambition, and innovative policies. By continuing on this path, India is shaping the future of the global economy and securing its place as a global leader.
References:
- https://openknowledge.worldbank.org/server/api/core/bitstreams/2f23708f-a06a-4dd5-872f-09b10e362ab4/content
- https://openknowledge.worldbank.org/collections/09c5e8fc-187f-5c2f-a077-3e03044c7b62?spc.sf=dc.date.issued&spc.sd=DESC
- https://www.imf.org/en/Publications/WEO/Issues/2025/01/17/world-economic-outlook-update-january-2025
