India Expected to Grow 6.7% in 2026 and 6.8% in 2027 Supported by Domestic Demand India-to-grow-goldman-sachs.webp

As per Goldman Sachs estimate, India is projected to maintain steady economic growth in 2026 and 2027, driven by robust domestic demand and increased infrastructure spending. These figures place India ahead among major global economies in terms of real GDP expansion. 

India’s Growth to Stay Above Global Average in 2026 and 2027 

Goldman Sachs estimated Real GDP growth in India is estimated at 6.7% in 2026 and 6.8% in 2027. This comes amid a global environment where overall economic expansion is forecasted at 2.8% in 2026. The estimates for India place its growth above the global average and other large nations. 

China is expected to grow at 4.8% in 2026 and 4.7% in 2027. In contrast, advanced economies like the US may see 2.6% growth in 2026. These figures highlight India's strength in domestic-led development and limited dependency on global trade flows. 

Key Drivers of India’s Economic Performance 

India’s economic momentum continues to benefit from rising household consumption, increased public sector project execution, and capital expenditure in core infrastructure such as roads, railways, and urban transport. These factors contribute positively to domestic production and employment. 

Lower exposure to global supply chain disruptions also supports steady internal growth versus more export-dependent economies. Public investment levels add stability and stimulate private sector involvement in long-term projects. 

Read More: Government To Implement Double Deflation in New GDP Series to Address IMF Concerns! 

Inflation and Monetary Conditions Aiding Expansion 

Price pressures are expected to ease across major economies by the end of 2026. Contributing factors include correction in commodity prices, productivity improvements, and declining input costs. Easing inflation may allow supportive monetary policies in emerging markets, including India. 

Lower interest rates and improved liquidity conditions could help sustain household spending and business investment, both essential for maintaining growth levels in the medium term. 

Global Labour Market Challenge Remains 

One potential concern is the global labour market. Productivity gains registered across economies are not being consistently reflected in employment generation. Though this issue is more visible in developed countries, its wider implications could ripple through emerging economies over time. 

Conclusion 

India’s estimated GDP g rowth of 6.7% in 2026 and 6.8% in 2027 reflects the impact of concentrated domestic demand, infrastructure initiatives, and favourable macroeconomic conditions. These factors contribute to India’s position as a key player in global economic activity in the coming years. 

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