India is expected to maintain its position as the fastest-growing economy among major global markets, according to the Global Investment Committee of a global investment firm. The report estimates India’s real GDP growth at 5.9 percent on a Q4-over-Q4 basis in 2025, and forecasts a rise to 6.4 percent in 2026.
“India remains the fastest growing economy in our coverage, with real GDP growth at 5.9 per cent, Q4/Q4 in 2025 and 6.4 per cent in 2026,” the committee stated in its latest update.
Despite the global slowdown, India’s strong domestic growth and structural reforms are helping sustain economic momentum. The report also maintains an overweight stance on India, Singapore, and the United Arab Emirates, driven by stable growth trends and supportive policy environments.
Globally, the economic outlook appears weaker. The report expects global real GDP growth to drop from 3.5 percent in 2024 to 2.5 percent in 2025. It highlights a likely trade shock that could affect several countries at once, leading many economies to grow below their potential.
In the United States, GDP growth is projected to fall sharply from 2.5 percent in 2024 to just 1.0 percent in 2025 and 2026, mainly due to uncertainties around trade policy. The eurozone is also expected to struggle, with growth not likely to exceed 1 percent per year during the forecast period because of lower consumption and exports.
China is forecast to face a slowdown as well, with expected GDP growth of 4.0 percent in 2025 and 4.2 percent in 2026. Tariffs and ongoing deflation concerns are likely to weigh on the economy. Meanwhile, Japan may see slower export growth due to global trade issues, although steady consumer spending could support nominal GDP.
The report adds that while Indian equities are currently seen as expensive compared to historical averages, strong inflows from domestic retail and institutional investors will continue to support elevated valuations.
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