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India Leads Growth Outlook as Global Economy Stabilises, WEF Finds
The World Economic Forum asked chief economists how they think the economy will perform.
They gave India one of the most positive growth outlooks in the world.
Nearly all respondents expected India to grow moderately or strongly over the next year.
They said India’s domestic demand is helping support growth, although higher energy prices remain a concern.
India was also considered an important place for multinational companies, but it fell to fourth in that ranking.
More than half of economists thought the global economy would stay stable or improve.
However, most still worried about wars, financial-market corrections and rising living costs.
Nearly everyone expected artificial intelligence to spread, but many also expected problems linked to expanding data centres.
The World Economic Forum survey identified India as having the strongest growth outlook among the economies covered.
Ninety-eight percent of surveyed chief economists expected moderate or stronger growth in India over the next 12 months, including 74% expecting strong or very strong growth.
India ranked fourth in favourable business environments for multinational companies, down from second previously, while the United States ranked first.
Fifty-six percent of economists expected the global outlook to remain stable or improve, but 97% cited geopolitical conflicts as a likely source of uncertainty.
Ninety-seven percent expected artificial intelligence adoption to increase, while many warned of data-centre backlash, higher costs and limited job creation.
- Who
- The World Economic Forum and chief economists from public and private sectors.
- What
- A quarterly survey found that India has the strongest growth outlook among the economies covered, while its ranking for multinational business conditions fell to fourth.
- Where
- The survey covers the global economy, including India, the United States, South-East Asia, Central Asia, Europe and China.
- When
- The survey was published on September 22, 2026, and assesses the outlook for the next 12 months.
- Why
- Economists cited resilient domestic demand in India, while also warning about geopolitical conflicts, energy prices, fiscal constraints, cost-of-living pressures and risks linked to artificial intelligence expansion.
Positive outlook
Risks and constraints
Global economic stability
Positive outlook
Fifty-six percent of chief economists expected the global outlook to remain stable or improve, a substantial improvement from the previous survey.
Risks and constraints
Confidence in a lasting stabilization remained limited; only about one-quarter expected the global economy to become more resilient.
India’s economic prospects
Positive outlook
India received the strongest growth assessment, supported by resilient domestic demand, and more than 60% expected real incomes to rise.
Risks and constraints
Higher energy prices were identified as a drag on India’s outlook, and India fell from second to fourth in the business-environment ranking.
Artificial intelligence
Positive outlook
Ninety-seven percent expected AI adoption to increase, and 69% anticipated meaningful productivity gains; AI could also support future economic resilience.
Risks and constraints
Many economists expected drawbacks from rapid AI infrastructure expansion, including data-centre backlash, higher electricity and water prices, and limited significant global job creation.
Key facts
- India growth outlook
- 98% of respondents expected moderate or stronger growth over the next 12 months; 74% expected strong or very strong growth.
- India FY2026–27 growth forecast
- The forecast was raised to 6.7% in August.
- Global outlook
- 56% expected the global outlook to remain stable or improve, compared with 11% in May based on the reported change from 89% expecting deterioration.
- Business environment ranking
- The United States ranked first, South-East Asia and Europe followed, India ranked fourth and China fifth.
- Geopolitical uncertainty
- 97% identified geopolitical conflicts as a likely source of uncertainty over the next year.
- Artificial intelligence
- 97% expected AI adoption to increase globally over the next 12 months.
- Living costs
- Respondents expected rising costs led by food, electricity and transport.
Quotes
World Economic Forum
International organization that published the Chief Economists’ Outlook survey
“Growth is expected to remain supported by resilient domestic demand, although higher energy prices continue to weigh on the outlook.”
thehindubusinessline.com
Sources
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