India remains fastest growing major economy, performs better amid global uncertainties: Assocham

New Delhi, May 12 India’s economy continues to show resilience despite rising global uncertainty and the impact of the ongoing West Asia conflict, remaining the fastest-growing major economy in the world, an Assocham ‘Global Economic Outlook’ said on Tuesday.

Despite global challenges, India’s economic fundamentals continue to remain resilient, with GDP growth expected to stay around 7 per cent in 2026-27.

India entered this period with strong macroeconomic fundamentals, supported by steady growth, controlled inflation, healthy financial conditions and robust domestic demand

Several economic indicators have shown positive trends in recent months. GST collections reached a record high, bank credit growth remained robust, exports continued to expand, and IIP remains in a steady zone.

According to the report, inflation remained under control, and government spending on infrastructure and development projects supported economic activity.

Major investments in roads, renewable energy, digital infrastructure, semiconductors, and technology during recent months reflect a focus on a long-term growth trajectory. Most of the states also reported progress in industrial development, investment, clean energy, and the technology sector.

“New policy measures on exports, start-ups, transport, and finance improve the ease of doing business and further strengthen the economy. However, the global economic outlook remains uncertain due to the ongoing tensions between the US and Iran, with no clear resolution emerging so far despite ongoing discussions,” the outlook mentioned.

At this stage, financial and commodity markets may remain volatile, keeping investor sentiment cautious, it added.

“Any positive progress towards peace talks between the US and Iran would bolster investor confidence and business sentiment with a strong rebound in financial markets,” according to the Global Economic Outlook.

The RBI has projected India’s real GDP growth at 6.9 per cent for F27, with Q1 at 6.8 per cent; Q2 at 6.7 per cent; Q3 at 7.0 per cent; and Q4 at 7.2 per cent. While risks remain because of the global situation and possible weather-related disturbances, India’s economy is considered to be in a stronger position compared to previous crisis periods, the report added.

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