India is likely to remain one of the strongest-performing major economies in the coming year, even as global economic uncertainty deepens, according to a recent World Economic Forum (WEF) assessment. The report suggests that India’s economic growth could stay close to 6.5% in 2026–27, supported by strong domestic demand, sustained infrastructure spending, and steady investment inflows. While most advanced and emerging economies are expected to face slower growth, economists surveyed by the WEF have warned of a broad-based global economic deceleration over the next year. Despite this, India is being viewed as a relative “bright spot” due to its structural economic strengths and policy continuity.
The report highlights that geopolitical tensions in West Asia, particularly risks surrounding the Strait of Hormuz, pose a significant threat to global stability. A prolonged disruption in this key oil shipping route could trigger sharp increases in energy and food prices, severely impacting global supply chains. Experts noted that such a scenario could be as damaging as past global tariff shocks, or even approach the severity of pandemic-era disruptions if prolonged. According to the survey, nearly 94% of economists believe that an extended closure of the Strait of Hormuz would lead to major inflationary pressures worldwide, while also disrupting trade flows.
Additionally, around 90% of respondents expect global economic growth to slow in the near term, although only a small share—about 13%—see a full global recession as likely. Despite these risks, India’s economic fundamentals remain comparatively strong. The WEF report points to reforms aimed at liberalising trade policy, expanding infrastructure, boosting digital and technological investment, and strengthening domestic manufacturing capacity as key drivers of resilience.
India, along with other large domestic-demand-driven economies such as the United States, is expected to remain more stable than export-dependent regions. The report concludes that India represents one of the most balanced combinations of scale, growth potential, and macroeconomic stability among emerging markets, positioning it as a key anchor of global growth amid rising uncertainty.
