New Delhi, Oct 26 (IANS) India’s economy continues to expand at a rapid pace, driven by strong domestic consumption, robust manufacturing, and steady growth in the services sector, economists said on Sunday.

They said the latest data from the International Monetary Fund (IMF) presents an encouraging outlook for the country — reinforcing its position as the world’s fastest-growing major economy.

According to the IMF’s latest projections, India’s economy is expected to grow at 6.6 per cent in 2026, maintaining its lead among large economies.

In contrast, China’s growth rate is forecast to slow to 4.8 per cent during the same period.

Commenting on the IMF’s report, Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings, said, “The IMF figures have been released, and they are very positive and encouraging. India’s growth rate in 2026 is expected to be 6.6 per cent, while China’s will be only 4.8 per cent.”

“This steady growth can be attributed to three key drivers — rising domestic consumption, a revival in manufacturing, and strong performance in the services sector,” he said.

Dr. Sharma added that India’s economy is expanding at a time when global growth is slowing down.

The IMF estimates that the world economy, which grew at 3.3 per cent in 2024, will moderate to 3.2 per cent in 2025 and 3.1 per cent in 2026.

The slowdown has been partly attributed to tariff measures introduced by US President Donald Trump, which have disrupted global trade flows.

The IMF’s ‘World Economic Outlook’ report projects that advanced economies will grow by just 1.6 per cent, while developing economies are expected to expand by 4.2 per cent.

The US economy is forecast to grow at 1.9 per cent, down from 2.4 per cent in 2024, while Spain is expected to be the fastest-growing advanced economy at 2.9 per cent.

The report also highlights that China’s economic momentum is weakening due to structural challenges, including demographic shifts, high debt levels, and continued pressure in the real estate sector.

In contrast, India’s growth story is underpinned by structural reforms, steady consumption growth, and major investments in infrastructure.

Economists believe India’s sustained momentum enhances its attractiveness for foreign direct investment (FDI) and portfolio inflows, strengthening its global economic standing and geopolitical influence.

However, they caution that the country must now translate this growth into inclusive development.

“India must seize this opportunity to accelerate job creation, reduce poverty, and invest in infrastructure, education, and healthcare,” Dr. Sharma noted.

“The next few years will be critical for turning growth into long-term gains — through higher productivity, better labour absorption, and a focus on skill development,” he added.

–IANS

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