WEF survey highlights India's resilient economic growth and policy stability amid global uncertainties

Livemint - Economy · 26 Sept 2026 · 2 min read
Prelims · Economy Mains · GS3 Economy High relevance

A WEF survey reveals 74% of economists expect strong growth in India, driven by resilient domestic demand and stable policies, positioning India as a global economic bright spot despite energy price risks.

Key points

World Economic Forum (WEF) survey shows 74% of economists predict strong/very strong growth for India in next 12 months, up from 52% in May 2026, reflecting improved confidence in India's economic trajectory.

Domestic demand resilience continues to support India's economy, with 62% of economists expecting real household incomes to rise, contrasting sharply with expectations for Europe and other regions where declines are anticipated.

India's projected FY27 GDP growth at 6.7% (RBI estimate) remains robust compared to global peers, though slightly downgraded from earlier projections by ADB (6.9% to 6.6%) and IMF (to 6.4%) due to global headwinds.

Labour market stability is expected with 70% economists predicting unchanged unemployment (currently 5%), while energy, tech, and financial sectors are likely to drive job creation.

Policy continuity is anticipated with 67% expecting unchanged monetary policy and 72% foreseeing stable fiscal policy, contrasting with expected tightening in US/Japan and loosening in China.

[GS3-Economy] Inflation outlook has improved with 55% now expecting moderate inflation (vs 61% predicting high inflation in May), though August's 4.8% CPI remains above RBI's 4% target.

Investment attractiveness places India 4th globally (40% include it in top 3 destinations), behind US (77%) but ahead of China (31%), though resilience to shocks is rated below US/China.

Energy prices remain a key risk factor, with food, electricity and transport costs identified as major inflation drivers globally, potentially impacting India's consumption-led growth.

This connects to GS2-Governance as it demonstrates how policy stability (monetary/fiscal) and institutional credibility (RBI's inflation targeting) contribute to economic resilience.

Way Forward: India should diversify energy imports to mitigate price shocks, enhance skill development in high-growth sectors (energy/tech), and strengthen social safety nets to protect vulnerable groups from inflation volatility.

Key terms

World Economic Forum (WEF)

An international organization headquartered in Geneva that engages political, business, cultural and other leaders to shape global, regional and industry agendas. For UPSC, its annual meetings and reports like the Global Competitiveness Report are important for understanding India's economic positioning and policy benchmarking.

Domestic demand

The total demand for goods and services within a country's borders. For UPSC, India's consumption-driven growth model makes this a critical economic indicator, linked to employment, income growth, and poverty reduction strategies.

Monetary Policy Committee (MPC)

The RBI's six-member committee that determines India's benchmark interest rates to maintain inflation within the 2-6% target band under the RBI Act 1934. Its decisions impact growth, investment climate, and forex stability - key topics in GS3 Economy.

Real household incomes

Income levels adjusted for inflation, measuring actual purchasing power. For UPSC, this connects to inclusive growth (GS2), poverty alleviation schemes, and consumption patterns that drive economic sectors (GS3).