India has retained its position as the world’s fastest-growing major economy underlining the resilience of its economic fundamentals amid an increasingly uncertain global environment.
According to India’s Ministry of Statistics and Programme Implementation, India’s economy expanded by 7.7 per cent in the 2025-26 financial year, exceeding several forecasts and reinforcing the country’s status as one of the key drivers of global growth.
Growth in the January–March quarter stood at 7.8 per cent, supported by strong domestic demand, rising private investment, agricultural output and continued expansion in the construction and services sectors.
India has remained the world’s fastest-growing major economy over the past five years, with the exception of FY2022 when Saudi Arabia briefly outpaced all major economies with approximately 12% growth, driven by an oil-sector rebound. This reflects India’s sustained resilience amid global economic uncertainty.
International institutions, including the IMF, World Bank and Asian Development Bank, project that India will retain its top position in GDP growth over the medium term, even as growth across advanced economies remains subdued.
India’s sustained growth comes at a time when the global economy is grappling with geopolitical tensions, supply chain disruptions, inflationary pressures and slowing trade activity. While many large economies have experienced weaker growth, India’s expansion has been supported by robust domestic consumption, government-led infrastructure investment, a growing digital economy and increasing private sector participation.
The country’s economic performance has also been bolstered by reforms aimed at improving ease of doing business, expanding manufacturing capacity and strengthening digital public infrastructure. Analysts point to India’s large domestic market, favourable demographics and rising investment activity as key factors supporting long-term growth prospects.
Despite the positive outlook, economists caution that challenges remain. Global geopolitical uncertainty, energy price volatility, inflation risks and external trade pressures could affect growth momentum in the coming years. Sustaining high growth rates will also require continued job creation, productivity gains and stronger private investment across sectors.
Nevertheless, India’s economic trajectory continues to stand out globally. As the country seeks to expand its manufacturing base, attract foreign investment and strengthen its position in global supply chains, policymakers remain focused on maintaining growth while ensuring long-term economic stability.
With forecasts continuing to place India ahead of other major economies, the country is on track to remain one of the most significant contributors to global economic growth.
Table: India and China GDP Growth Rates (FY2021-22 to FY2025-26)
| Year | India | China |
|---|---|---|
| 2021-22 | 9.7% | 8.4% |
| 2022-23 | 7.0% | 3.0% |
| 2023-24 | 9.2% | 5.2% |
| 2024-25 | 6.5% | 5.0% |
| 2025-26 | 7.7% | ~5.0% |
Source: India Ministry of Statistics and Programme Implementation (MoSPI), National Bureau of Statistics of China, International Monetary Fund (IMF) World Economic Outlook, and official government estimates.
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