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India's GDP to hit 7.5% in 2026, outperforming global growth amid inflation concerns
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Firstpost•29-09-2026, 14:08
India's GDP to hit 7.5% in 2026, outperforming global growth amid inflation concerns
- •Allianz Research forecasts India's economic growth at 7.5% in 2026, moderating to 7.1% in 2027 and 6.8% in 2028.
- •India remains among the fastest-growing major economies despite a subdued global growth outlook.
- •Global GDP growth is expected to decline from 3% in 2025 to 2.6% in 2026, with Asia remaining the main engine of global growth.
- •Inflationary pressures in India are projected to increase, with consumer price inflation forecast at 4.7% in 2026, rising to 5.2% in 2027.
- •Allianz Research anticipates a monetary tightening cycle in India and South Korea in Q4 2026, sensitive to energy, food inflation, and currency pressures.
Key Questions Answered
According to Allianz Research's Economic Outlook report, India's GDP growth is expected to remain strong at 7.5 per cent in 2026 before moderating to 7.1 per cent in 2027 and 6.8 per cent in 2028.
Consumer price inflation in India is forecast at 4.7 per cent in 2026, projected to rise to 5.2 per cent in 2027, and subsequently ease to 4.2 per cent in 2028.
Allianz Research expects India, alongside South Korea, to enter a monetary tightening cycle in the fourth quarter of 2026 due to regional sensitivities involving energy and food inflation and currency pressures.
