World Bank GEP report: India’s economy to outpace global peers, to grow at 6.7 percent

At a time when global growth is expected to remain at 2.7 per cent in 2025-26, India is set to dominate the global economic landscape, maintaining its status as the fastest growing large economy for the next two fiscal years.

The January 2025 edition of the World Bank’s Global Economic Prospects (GEP) report projects India's economy to grow at a steady rate of 6.7% in both FY26 and FY27, significantly outpacing global and regional peers. The global growth is expected to remain at 2.7 per cent in 2025-26.

GEP report credits this extraordinary momentum to a thriving services sector and a revitalised manufacturing base, driven by transformative government initiatives. From modernising infrastructure to simplifying taxes, these measures are fuelling domestic growth and positioning India as a cornerstone of global economic stability.

Complementing the World Bank report, the latest update from the International Monetary Fund’s (IMF) World Economic Outlook (WEO) also reinforces India’s strong economic trajectory. The IMF forecasts India's growth to remain robust at 6.5% for both 2025 and 2026, aligning with earlier projections from October.

The Global Economic Prospects (GEP) report is a flagship publication of the World Bank Group that examines trends and projections in the global economy. The January edition delves into detailed analyses of pressing policy issues, while the June edition provides shorter, focused analytical pieces.

With this momentum, India is set to shape the future of the global economy, exemplifying the power of ambition, resilience, and strategic governance in achieving unparalleled progress.

Key Findings in January 2025 Report

India’s economy is expected to grow at a stable rate of 6.7 per cent annually during FY26 and FY27.

Growth in India’s services sector is expected to remain robust, while manufacturing activity will strengthen, supported by government efforts to improve logistics infrastructure and streamline tax systems.

Private consumption in India is likely to gain momentum, driven by a stronger labour market, increased access to credit, and lower inflation.

Global economic growth is projected to hold steady at 2.7 per cent in 2025-26, highlighting India's outperformance.

Emerging Market and Developing Economies (EMDEs) have undergone significant transformation since 2000, now contributing about 45 per cent of global GDP, compared to 25 per cent at the start of the century.

India, China, and Brazil, the three largest EMDEs, have collectively driven approximately 60 per cent of annual global growth since the start of the century.