India Economic Performance: According to Harvard economist Jason Furman, India is the fastest growing large economy in the world after Covid-19. Economies like the US, China and the Euro area are struggling, while India has shown strong growth.
India GDP Growth Post Covid: While sharing a data, Jason Furman, Professor of Harvard University and Chairman of CEA (Council of Economic Advisors) during the time of former US President Barack Obama, has described India as the fastest growing large economy in the world. According to him, after the Covid-19 pandemic, India has left behind economic superpowers like America and China. According to Furman, when the Corona epidemic shook the economy of the entire world. Business and travel almost came to a standstill and there was a huge decline in the GDP of many countries, while India was the only country which showed sustainable and positive growth. India’s GDP growth is projected to reach above 5% from 2019 to 2025 Q3.
Comparison of the world’s top economies
India: fastest growing economy
India was most affected during Covid-19. GDP fell by –25% in 2020. But after this India made a rapid recovery and achieved positive growth of 8% by 2025. Behind this are policies like increase in domestic consumption, investment, digital infrastructure, youth population and PLI. Exports of electronics and pharmaceuticals reached record levels, while the IT and services sectors weathered the global recession. The government’s fiscal policy and prudence in spending also strengthened the economy. The fiscal deficit was kept below 6%, leaving ample room for infrastructure and social security.
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America: Rapid recovery, but lagging behind India
America showed quick recovery after the shock of Covid-19. The government’s fiscal stimulus such as the American Rescue Plan supported the economy. However, US growth is still only 2% above the old trend. This means that the US has avoided permanent damage, but its growth pace is not as fast as India. Furman also noted that much of America’s recent growth has come from AI and data center investments, which could raise questions about the overall economic health.
China: the biggest challenge
China lagged the most during Covid-19 and even after initial recovery, its growth remained below trend till 2025. Zero-Covid policy and real estate crisis caused permanent damage. According to Furman, China’s growth trend is still down 5%, which means China has not returned to its previous levels and is still facing economic challenges.
Euro area: still recovering
The Euro Area was most affected by Covid-19. The sector went down nearly 25% in 2020. Although there was a recovery later, it is still on a 3% downward trend till 2025. This means that the euro area is at a permanent loss and their economies have never fully recovered to their previous levels.
The most difficult times for Russia
Geopolitical tensions and sanctions had a major impact on Russia’s economy. Russia went down by about 8% in 2020 and the situation remains almost the same till 2025. This means that Russia’s economy was affected by Covid and global pressure and is still lagging behind the old trend.
IMF and global agencies reports
The International Monetary Fund (IMF) has described India’s economy as emerging strongly. IMF has raised India’s growth forecast for FY26 to 6.6%, up from the earlier estimate of 6.4%. This growth is mainly due to GDP expanding by 7.8% in Q1FY26. The IMF says the global economy is slowing, but India’s strong performance keeps it among the world’s leading developing economies.