New Delhi [India], December 21 (ANI): Structural drivers, such as digitisation, technological advancements and favourable demographics, may continue to position India among the fastest-growing major economies, according to the Economic Outlook 2026 released by the Mastercard Economics Institute (MEI).<\/p>\n
India’s economy is expected to consolidate on its long-term growth trajectory in 2026, with real GDP growth moderating to 6.6 per cent and inflation rising to 4.2 per cent, according to the Economic Outlook 2026.<\/p>\n
The outlook follows an expected strong performance in 2025, when India is estimated to record 7.8 per cent GDP growth with inflation at 2.2 per cent. <\/p>\n
MEI stated that ‘India’s economy is expected to consolidate toward long-term trends in 2026,’ reflecting a shift from above-trend growth toward a more sustainable pace.<\/p>\n
Domestic policy measures are expected to support economic activity. Broadly, the Indian economy is supported by policy, demographics and digitalisation.<\/p>\n
According to the report, front-loaded monetary easing, income tax reforms and rationalisation of goods and services tax (GST) rates may bolster personal consumption.<\/p>\n
In addition, targeted export support may help mitigate downside risks arising from global disruptions and external market volatility.<\/p>\n
MEI noted that disinflationary impulses from lower global goods and commodity prices could support India’s growth resilience. <\/p>\n
Structural factors also remain supportive. <\/p>\n
The report said that ‘digitisation, technological advancements and favourable demographics may continue to position India among the fastest-growing major economies,’ underscoring the role of long-term drivers in sustaining momentum.<\/p>\n
At the same time, external headwinds, however, persist. <\/p>\n
MEI cautioned that high US tariffs may challenge labour-intensive sectors like textiles, gems and jewellery. The report also highlighted risks to the IT services sector, noting that tightening immigration norms could affect labour mobility, travel flows and remittances. <\/p>\n
Progress on the ongoing US-India Bilateral Trade Agreement will therefore be closely monitored in 2026, it noted.<\/p>\n
‘The progress on the ongoing US-India trade deal will be closely watched. These shifts also present opportunities for India to diversify supply chains and expand goods trade through bilateral and regional agreements — fueling growth in global capability centres and Tier 2-3 cities,’ the MEI report said. (ANI)<\/p>\n","protected":false},"excerpt":{"rendered":"New Delhi [India], December 21 (ANI): Structural drivers, such as digitisation, technological advancements and favourable demographics, may continue…\n","protected":false},"author":2,"featured_media":194589,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[3225,138,120674,37421,219,29420,120673,2344,120675,111,139,69,13194,584],"class_list":{"0":"post-194588","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-according","9":"tag-business","10":"tag-digitisation-technological","11":"tag-economic-outlook","12":"tag-economy","13":"tag-fastest","14":"tag-fastest-growing","15":"tag-india","16":"tag-major-economies","17":"tag-new-zealand","18":"tag-newzealand","19":"tag-nz","20":"tag-progress","21":"tag-trade"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/194588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=194588"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/194588\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/194589"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=194588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=194588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=194588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}