India’s Economy to Lead G20 Pack with Over 6% Growth in Coming Years

India's economy is projected to grow by 6.3% in the fiscal year 2025-26 and 6.4% in 2026-27, according to the Organisation for Economic Cooperation and Development (OECD). This positions India as the fastest-growing economy among the G20 nations, even as global economic growth is expected to slow to 2.9% during the same period.

The OECD says India's strong economic outlook is supported by domestic consumption, helped by rising real incomes and lower personal income taxes. Investment is also likely to stay strong, supported by easing financial conditions. However, export growth may face pressure because of weaker global demand and uncertainty in trade policies.

Other global institutions have also shown confidence in India’s growth. Swiss brokerage UBS recently raised its GDP growth forecast for India for FY26 from 6% to 6.4%, noting that domestic demand remains strong despite global trade tensions. The Reserve Bank of India has forecast a 6.5% growth rate for FY26, with inflation expected to be steady at around 4%. Similarly, EY has projected a 6.5% growth rate, pointing to falling crude oil prices and stable inflation as key factors.

In the fourth quarter of FY 2024-25, India’s economy grew by 7.4%, showing a strong performance. However, the annual GDP growth for that year is likely to be 6.5%, which would be the lowest in the last four years. Despite this, Finance Minister Nirmala Sitharaman said that India continues to be the fastest-growing economy for the fourth year in a row. Growth has been driven by the manufacturing sector, services, and agriculture.

Chief Economic Advisor V Anantha Nageswaran stressed that for India to maintain a growth rate above 6.5%, businesses need to increase capital expenditure. He also said that worker wages must rise in line with company profits to support long-term growth.

According to the Economic Survey 2025, India’s growth for FY26 is expected to be between 6.3% and 6.8%. The survey highlights strong fundamentals, a healthy external account, and steady private consumption as the main reasons for this optimism. In short, despite global uncertainties, India’s economic future looks positive. Strong domestic demand, government policies, and stable inflation are helping to keep India on a steady path of growth.