India’s economy is expected to expand 6.7% in fiscal 2026-27, the fastest pace among major economies, as resilient domestic demand supports growth despite a challenging global backdrop, according to the World Economic Forum (WEF)’s latest Chief Economists Outlook released in September 2026 as cited by DD News.
The survey, covering 92 senior economists from the public and private sectors across 10 major economies and regions, found a marked improvement in expectations for India. About 74% of respondents now foresee strong or very strong growth, up from 52% in May.
Nearly 98% expect growth over the coming 12 months to remain at least moderate. Labour market conditions also appear broadly stable. About 70% of economists expect little change in unemployment over the next year.
India’s unemployment rate for people aged 15 and above eased to 5% in August from 5.1% in July, while the labour force participation rate increased to 55.6% from 55.4%. Inflation expectations have softened.
About 55% of respondents anticipate moderate price pressures over the next year, compared with 61% expecting high inflation in May. Consumer price inflation stood at 4.8% in August, within the Reserve Bank of India (RBI)’s 2%-6% tolerance band.
Policy expectations are similarly steady, with 67% anticipating no major monetary policy shift and 72% expecting fiscal policy to remain broadly unchanged. The survey closed on August 20 2026, subsequent first-quarter GDP growth of 7.8% prompted the US credit rating agncy Moody’s to raise India's fiscal 2026-27 growth forecast to 7% from 6%.
The data could reinforce expectations that India will retain its position as the fastest-growing major economy. India’s government has made it a point to attend many WEF summits with the 2026 Davos meeting in January being a show of force as well as an opportunity for diplomacy for the country.
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