This American firm has expressed confidence that India's GDP will grow at a rate of 6.7% in 2026

Amid the global economic slowdown, India's economy appears to be growing rapidly. According to global investment bank Goldman Sachs, India could achieve GDP growth of 7.6 percent in 2025 and 6.7 percent in 2026. These rates make India the fastest-growing country among the world's major economies.

According to the report, China's economic growth is projected to remain below 5 percent during the same period, while growth in the US and the Eurozone could be well below 3 percent. Global GDP growth is projected to average 2.8 percent in 2026, far behind India's projected pace.

Strengthened by domestic demand and investment

Strong domestic demand, infrastructure investment, and relatively stable macroeconomic conditions are driving India's economic growth. These factors, the report says, set India apart from China and Western countries.

The report paints a mixed picture for China's economy. GDP growth is projected to be 4.8 percent in 2026. According to Goldman Sachs, China's manufacturing sector is still growing strongly and its ability to produce high-quality products at low prices remains intact. According to the bank's chief economist, Jan Hatzius, despite high tariffs, China has largely offset the impact on exports.

However, the report also notes that weakness persists in many parts of China's domestic economy. The property sector could negatively impact GDP growth by approximately 1.5 percentage points in 2026. 

Strong manufacturing and weak domestic demand are expected to lead to a widening of China's current account surplus, which could impact the global economy in the coming years.

Global Economic Scenario

According to Goldman Sachs, US GDP growth could reach 2.6 percent in 2026, while the euro zone economy is projected to grow at a pace of 1.3 percent. The report also indicates that inflationary pressures in developed countries are likely to ease and interest rate cuts are likely.