India Gets Strongest Growth Outlook in WEF Survey as 74% of Chief Economists Expect Strong Expansion

India has emerged with the strongest growth outlook among the major geographies covered in the World Economic Forum’s September 2026 Chief Economists’ Outlook, with 74% of surveyed chief economists expecting strong or very strong growth over the next 12 months.

The improvement is substantial. In May 2026, only 52% of respondents held the same view. The latest survey places India alongside South-East Asia at the front of the global growth outlook, while expectations remain weaker for China and Europe.

India Leads Regional Growth Expectations

The World Economic Forum said growth prospects have strengthened across several regions, but the recovery remains uneven.

India received the strongest assessment in the September survey, followed closely by South-East Asia. The United States was seen as likely to record moderate growth, while China’s outlook weakened. Europe remained the region with the lowest growth expectations despite some improvement from earlier in the year.

The change in sentiment towards India is one of the clearest shifts in the report. The share of chief economists expecting strong or very strong growth has risen by 22 percentage points since May.

Domestic Demand Continues to Support India’s Economy

The report points to resilient domestic demand as one of the main reasons behind India’s stronger outlook.

Consumption and investment activity have helped cushion the economy from weaker external conditions and geopolitical uncertainty. The WEF also noted that India remains one of the few major regions where respondents expect real household incomes to perform comparatively well.

This gives India a different growth profile from economies that depend more heavily on external demand or remain constrained by weak consumer spending.

India’s FY 2026-27 Growth Outlook Raised to 6.7%

India’s growth forecast for FY 2026-27 has been raised to 6.7%, reflecting continued confidence in domestic economic momentum.

The outlook remains exposed to external pressures, particularly energy prices. India imports a large share of its crude oil requirement, making global oil and gas prices an important factor in inflation, trade balances and production costs.

Even with these pressures, the WEF survey shows that economists remain more positive about India than most other major regions covered in the report.

Global Economic Sentiment Improves From May

The September outlook also shows a marked improvement in sentiment towards the global economy.

Around 56% of surveyed chief economists now expect global economic conditions to remain stable or improve over the next year. This is a sharp change from May, when 89% expected conditions to weaken.

The improvement suggests that fears of a broader global slowdown have eased, although the WEF cautioned that the world economy remains vulnerable to geopolitical shocks, financial-market corrections and fiscal constraints.

Geopolitical Conflict Remains the Largest Risk

Despite the more positive growth outlook, geopolitical uncertainty remains the dominant concern.

A total of 97% of surveyed economists identified geopolitical conflict as a major source of economic uncertainty over the next 12 months.

Potential asset-price corrections were also identified as a significant risk, while only a minority of respondents expect the global economy to become more resilient in the near term.

This combination explains why the September report is more positive on growth without becoming optimistic about the broader economic environment.

Fiscal Space Is Becoming More Limited

The WEF also highlighted the shrinking ability of governments to respond to future shocks.

Around 69% of respondents said fiscal support had played a major role in maintaining global economic resilience since 2020, but only 28% expect governments to have the same capacity over the coming year.

Higher public debt and tighter financial conditions mean many governments now have less room to use large spending programmes when new economic disruptions emerge.

This places greater importance on productivity, private investment, technological innovation and supply-chain resilience.

AI Remains a Major Source of Economic Optimism

Artificial intelligence continues to stand out as one of the strongest areas of optimism in the WEF survey.

The report found that 97% of respondents expect AI adoption to increase, reinforcing expectations that artificial intelligence will continue to influence investment, productivity and business models.

At the same time, economists remain cautious about the employment and infrastructure effects of large-scale AI expansion. Data centres require substantial electricity, water and physical infrastructure, creating new economic and regulatory pressures even as AI investment accelerates.

India Benefits From a Large Domestic Market

India’s relatively strong position in the survey reflects structural factors as well as short-term growth momentum.

A large domestic market, expanding manufacturing base, rising investment in infrastructure and growing participation in global supply chains give the economy multiple sources of demand.

This does not shield India from external shocks, but it reduces dependence on any single source of growth.

The strength of domestic demand is particularly important at a time when global trade remains exposed to geopolitical fragmentation and changing supply-chain strategies.

A Strong Outlook, Not a Guaranteed Outcome

The WEF’s Chief Economists’ Outlook is a survey of expectations rather than a forecast that guarantees a particular economic result.

The September survey was conducted between 4 and 20 August 2026, meaning it reflects the views of respondents during that period.

Even so, the direction of change is clear. Confidence in India has strengthened markedly since May, and the country now stands at the top of the regional growth assessments covered by the World Economic Forum.

The latest report therefore reinforces India’s position as one of the strongest-performing major economies in the current global environment, while also underlining the importance of managing energy costs, geopolitical risks and external financial pressures.

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References

World Economic Forum — Chief Economists’ Outlook: September 2026, published September 22, 2026.

World Economic Forum — Official press release accompanying the September 2026 Chief Economists’ Outlook.

World Economic Forum, Centre for the New Economy and Society — Chief Economists’ Outlook survey methodology and regional growth assessments.

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