India's economic growth resilient amid geopolitical tensions and global uncertainties

New Delhi: As global growth is forecast to slow from 3.5 per cent in 2025 to 3.1 per cent in 2026, India’s economic resilience is increasingly evident as it sustains growth despite geopolitical tensions, volatile energy markets, trade uncertainty, and tighter financial conditions, according to a new report.

Major global institutions' upward revisions to GDP forecasts reinforce India’s standing as a leading global growth engine, says the report in Tanzania-based The Guardian (IPP Media).

“Export diversification, digital transformation, fiscal discipline, and energy security will strengthen competitiveness and sustain long-term, inclusive economic growth,” it noted.

The IMF recently raised India’s growth forecast to 7.0 per cent for both 2026 and 2027, making it the fastest-growing major economy and highlighting strong domestic drivers and resilience to external shocks.

“A principal source of India’s economic strength is its large and diversified domestic market. Household consumption, business investment, and public expenditure on infrastructure together create a broad base of economic activity. This domestic orientation helps cushion the economy when external demand weakens or international markets become volatile,” said the report.

Notably, private consumption drives sectors ranging from automobiles and housing to tourism, healthcare, and finance. Rising incomes, urbanisation, digital access, and improved connectivity expand demand and support business investment and innovation.

The rapid adoption of digital platforms has transformed domestic economic participation.

“Digital payments, online commerce, digital public infrastructure, and technology-enabled government services have reduced transaction costs and expanded market access. Small businesses can reach customers beyond their immediate geographical areas, while digital financial services facilitate payments, credit assessment, and formalisation,” the report mentioned.

Moreover, infrastructure investment in transport, logistics, power, and digital connectivity strengthens India’s resilience by lowering costs, expanding market access, and improving the flow of goods and services.

India’s exports are expected to reach $1 trillion, an all-time high in 2026-27, with a target of $2 trillion by 2030. The manufacturing sector also grew by 9.2 per cent in Q1 FY27.

India’s economic landscape demonstrates remarkable adaptability, having successfully navigated global volatility through strong domestic fundamentals and proactive policy management, said the report.