Daijiworld Media Network - New Delhi

New Delhi, Oct 26: India’s economy is projected to sustain its rapid expansion in the coming years, buoyed by strong domestic consumption, a manufacturing rebound, and a thriving services sector, economists said on Sunday.

According to the latest World Economic Outlook report by the International Monetary Fund (IMF), India is expected to grow at 6.6 per cent in 2026 — the highest among major economies — while China’s growth is forecast to slow to 4.8 per cent.

“The IMF figures are very positive and encouraging,” said Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings. “India’s growth trajectory reflects resilience and strength, especially when global growth is moderating.”

The IMF projects global economic growth to ease from 3.3 per cent in 2024 to 3.2 per cent in 2025 and 3.1 per cent in 2026, largely due to trade disruptions triggered by tariff measures under US President Donald Trump.

Advanced economies are expected to grow by just 1.6 per cent, while developing nations are projected to expand by 4.2 per cent. The US economy may slow to 1.9 per cent, down from 2.4 per cent in 2024, with Spain leading advanced economies at 2.9 per cent.

China’s outlook, the IMF noted, remains subdued amid demographic challenges, heavy debt, and a sluggish real estate sector. In contrast, India’s economic momentum continues to build on policy reforms, rising consumption, and large-scale infrastructure investment.

Experts believe this consistency makes India an increasingly attractive destination for global investors, enhancing its role as a key player in the world economy.

However, economists stress the importance of translating growth into broad-based development. “India must capitalise on this momentum to generate employment, reduce poverty, and strengthen human capital,” Dr. Sharma said. “The next few years will be crucial to ensure that high growth leads to lasting prosperity.”