India GDP growth seen at 7.5% in 2026, to moderate to 7.1% in 2027


India is projected to remain among the fastest-growing major economies, with growth expected to ease to 6.8% in 2028 as inflation rises and monetary conditions tighten

India’s economic 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, according to Allianz Research’s latest Economic Outlook 2026-28 report.

The forecast keeps India among the fastest-growing major economies despite a subdued global growth outlook over the next few years.

According to Allianz Research’s growth forecast table, India’s GDP growth is estimated at 7.5 per cent in 2026, unchanged from 2025. Growth is then projected to slow to 7.1 per cent in 2027 and 6.8 per cent in 2028.

The global economy, meanwhile, is expected to grow at a slower pace. Allianz Research forecasts global GDP growth to decline from 3 per cent in 2025 to 2.6 per cent in 2026, before recovering to 2.8 per cent in 2027 and easing again to 2.6 per cent in 2028.

Asia is expected to remain the main engine of global growth, with regional growth staying around 4.4 per cent, according to the report.

India inflation outlook

Allianz Research expects inflationary pressures in India to increase in 2027. Consumer price inflation is forecast at 4.7 per cent in 2026, rising to 5.2 per cent in 2027 before easing to 4.2 per cent in 2028.

The research firm also expects monetary conditions in India to become tighter later this year.

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Allianz Research expects India, along with South Korea, to enter a monetary tightening cycle in the fourth quarter of 2026. It said monetary policy across the region would remain sensitive to energy and food inflation as well as currency pressures.

The broader global economic outlook will depend on developments in energy markets, bond markets and investment linked to artificial intelligence.

Allianz Research said its baseline outlook assumes that these pressures ease rather than intensify. It cautioned that its projections for growth, inflation and interest rates depend on those assumptions holding.

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