India will remain one of the fastest growing economies next year even as global economic growth is expected to remain stable. According to Goldman Sachs, the global growth rate is expected to be 2.8 percent in 2026. This is higher than the consensus estimate of 2.5 percent. This is possible due to stable inflation and easy monetary conditions in many economies.
The US is likely to perform much better due to tariff reductions, tax cuts and easier financial conditions, the report said. Emerging markets, including India, are expected to outperform developed countries due to strong domestic demand and favorable structural trends. India’s real gross domestic product (GDP) growth rate may be around 6.7 percent during this period and 6.8 percent in 2027. This exceeds consensus growth projections and keeps India one of the fastest growing large economies.
Price pressure will reduce in most economies
Goldman Sachs estimates that lower commodity prices, improved productivity and reduced supply-side constraints will ease price pressures in most economies by the end of 2026. This environment is likely to allow central banks in many emerging markets to maintain or adopt accommodative policy stances, which could further support growth prospects for countries like India.
China’s growth rate 4.8%
The firm estimates that China will grow at a rate of 4.8 percent in 2026 and 4.7 percent in 2027. India’s growth momentum continues to benefit from strong domestic consumption, public infrastructure spending and relatively limited exposure to global trade disruptions compared to export-oriented economies.
While advanced economies like the US and the euro zone are expected to see moderate growth, emerging economies like India remain important contributors to global expansion.
