India's economic engine is set to roar in the fiscal year 2025-26, with growth estimates significantly outpacing both global and advanced economies, according to a leading economist. The country is not just keeping pace but is emerging as a clear outperformer among its peers.
Robust Growth Projections Leave Global Averages Behind
Chief Economist Manoranjan Sharma of Infomerics Ratings has projected a strong 7.4% GDP growth for India in FY26. This figure stands in stark contrast to the estimated global average growth of just 2.2% and the meager 0.5% expected from advanced economies. The assessment, made on January 08, 2026, underscores India's accelerating economic momentum and its strengthening position in nominal GDP rankings worldwide.
Sharma emphasized that India's performance has been exceptional, even within the cohort of emerging markets. The nation's growth narrative is transitioning from one of potential to one of proven and sustained delivery on the global stage.
The Five Pillars Propelling India's Economic Ascent
The economist identified five fundamental drivers behind this optimistic forecast. These pillars form a robust foundation for the country's continued expansion.
First, sustained public investment in critical infrastructure—encompassing transport, energy, and other core sectors—is creating long-term assets and boosting productivity. Second, robust domestic consumption remains a key force, fueled by direct tax relief for individuals and ongoing reforms in the Goods and Services Tax (GST) framework.
The third pillar is the resilient services sector, with standout performances in Information Technology (IT), finance, and a rebounding tourism industry. Fourth, India has achieved a degree of macroeconomic stability, characterized by controlled inflation, which fosters a conducive environment for investment and planning.
Finally, a manageable fiscal deficit provides the government with the necessary fiscal space to support growth without jeopardizing economic stability. Sharma stressed that the continued strength of these interconnected drivers requires vigilant monitoring to maintain the current economic trajectory.
Sustaining Momentum in a Complex Global Landscape
This positive domestic outlook comes amidst a complex and often volatile global economic environment. While the report focuses on the internal engines of growth, India's ability to navigate international trade dynamics, geopolitical shifts, and global financial conditions will be crucial in translating these projections into reality.
The significant gap between India's projected growth rate and that of advanced economies highlights the country's role as a primary engine of global economic expansion. For policymakers and investors alike, the focus must now be on implementing measures that not only sustain but potentially accelerate this growth, ensuring inclusive development and job creation.
In conclusion, the analysis from Infomerics Ratings paints a picture of an economy firing on all cylinders. With strategic focus on its core strengths—infrastructure, consumption, services, stability, and fiscal prudence—India is poised to cement its status as a high-growth economic powerhouse in FY26 and beyond.
