India continues to lead the GDP growth outlook among major economies, with the World Economic Forum’s Chief Economists Outlook report projecting 6.7 per cent growth for 2026-27. The report attributes the outlook to continued resilience in domestic demand.
The September 2026 edition of the Chief Economists’ Outlook examines economic conditions across 10 regions: the United States, Europe, China, Japan, India, Southeast Asia, Latin America and the Caribbean, the Middle East and North Africa, Central Asia, and Sub-Saharan Africa.
A total of 92 chief economists from the public and private sectors contributed to the survey. Among those surveyed, 74 per cent expect strong or very strong growth in India, up from 52 per cent in May. Meanwhile, 98 per cent expect India to record moderate or stronger growth over the next 12 months, the report said.
Unemployment Outlook Remains Stable
The chief economists expect relatively stable employment conditions in India over the next year. About 70 per cent of respondents expect no change in unemployment, while 17 per cent anticipate an increase and 13 per cent expect a decline.
India’s unemployment rate among people aged 15 and above fell to 5 per cent in August from 5.1 per cent in July. At the same time, the labour force participation rate increased from 55.4 per cent to 55.6 per cent.
“These developments point to relatively stable labour market conditions alongside strong activity, although sustained employment creation remains important,” the report said.
Inflation Expectations Moderate
The report also highlights a moderation in India’s inflation expectations since May. Around 55 per cent of chief economists expect moderate inflation over the next 12 months, while 45 per cent expect high inflation. In May, 61 per cent of respondents had expected high or very high inflation.
Consumer price inflation rose to 4.8 per cent in August, moving above the Reserve Bank of India’s 4 per cent medium-term target while remaining within the 2-6 per cent tolerance range.
Monetary Policy Outlook
Most chief economists expect the Reserve Bank of India to maintain its current monetary policy stance over the next 12 months. Around 67 per cent of respondents expect no change in monetary policy, while 24 per cent anticipate tightening.
The RBI kept the policy rate at 5.25 per cent in August and retained a neutral policy stance.
Fiscal Policy Expected to Remain Stable
The survey also points to broadly stable fiscal policy. Around 72 per cent of chief economists expect no change in fiscal policy, while 22 per cent anticipate a looser stance.
“Strong growth and inflation that remains within the tolerance range are broadly consistent with survey expectations of policy stability,” the report said.
GDP Data Triggers Upward Forecast Revisions
The survey closed on August 20, before India released its latest GDP data on August 31. The data showed that India’s economy grew 7.8 per cent in the first quarter of FY27.
The strong quarterly expansion has since prompted several institutions to revise their growth forecasts upward. Moody’s, for example, raised its FY27 GDP growth forecast for India to 7 per cent from its earlier projection of 6 per cent.
The ratings agency cited the resilience of the Indian economy amid the war in West Asia as one of the factors behind its revised forecast.