India is expected to be the primary engine of global economic growth in 2025 and 2026, according to a report of the World Economic Forum (WEF), Chief Economists Outlook.
The report, based on a survey of leading economists, cites India’s strong economic fundamentals and optimistic outlook despite global uncertainties. WEF said, “India, the region’s largest economy, looked set to be the primary engine of growth”.
Gold Rate
31 July 2025
The International Monetary Fund has forecast India’s GDP to grow at 6.2 per cent in 2025 and 6.3 per cent in 2026, making it the fastest-growing major economy in South Asia. This robust growth places India at the centre of the region’s economic momentum. The report highlighted that although South Asia is facing some challenges, such as the impact of rerouted Chinese exports, there are positive signs.
For instance, recent purchasing managers’ index (PMI) data have shown better-than-expected performance, especially in new export orders, signalling strong demand for the region’s goods and services.
The WEF also mentioned that a recently concluded trade agreement between India and the United Kingdom is also seen as a boost to India’s trade outlook. Such developments have further strengthened economists’ confidence in the region.
Among all global regions, South Asia has emerged as the most promising, with one-third (33 per cent) of economists expecting strong or very strong growth for the rest of 2025. However, the outlook is not without concerns. The recent outbreak of military tensions between India and Pakistan in early May has added uncertainty to the region.
In terms of inflation, most chief economists expect moderate (61 per cent) to high (26 per cent) price rises across South Asia in the coming months. Globally, the economic environment remains fragile. The WEF report noted that the overall condition of the world economy has weakened since the start of the year. One of the major concerns is the shift in US economic and trade policy.
