Amidst the global economic slowdown, India’s economy seems to be growing rapidly. According to global investment bank Goldman Sachs, India can register GDP growth of 7.6 percent in 2025 and 6.7 percent in 2026. These rates make India the fastest growing country among the world’s major economies.
According to the report, China’s economic growth is expected to be below 5 percent during the same period, while the growth of America and Euro zone may be much less than 3 percent. Global GDP growth in 2026 is estimated at an average of 2.8 percent, which is far behind India’s projected pace.
Strength from domestic demand and investment
Strong domestic demand, infrastructure investment and relatively stable macro-economic conditions are playing an important role behind India’s economic growth. According to the report, these factors put India in a different position from China and western countries.
China’s economy has been presented as a mixed picture in the report. China’s GDP growth is estimated to be 4.8 percent in 2026. According to Goldman Sachs, China’s manufacturing sector is still growing strongly and its ability to produce better quality products at lower prices remains intact. According to the bank’s chief economist Jan Hatzius, despite the high tariffs, China has largely balanced the impact on exports.
However, the report also shows that weakness remains in many parts of China’s domestic economy. The property sector may have a negative impact of about 1.5 percentage points on GDP growth in 2026. China’s current account surplus is expected to increase due to strong manufacturing and weak domestic demand, which may impact the global economy in the coming years.
Global Economic Scenario
According to Goldman Sachs, America’s GDP growth could reach 2.6 percent in 2026, while the euro zone economy is expected to grow at a pace of 1.3 percent. The report also indicates that there is a possibility of reduction in inflation pressure and reduction in interest rates in developed countries.
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