Will India sustain its world-beating growth in 2026?

In 2025, India's economic growth stayed strong and inflation low amid geopolitical tensions and trade headwinds. The government also unveiled reforms and targeted stimulus, including tax cuts. Mint examines how the economy fared, and what lies ahead in 2026:

- BY N. MADHAVAN

1 How was 2025 for the Indian economy?

Quite strong. The economy expanded at a brisk pace, clocking average gross domestic product (GDP) growth of 7.8% in the first three quarters of the year, with growth in the final quarter (October-December) estimated at 7%. This sets the stage for GDP growth of about 7.6% in 2025, once again making India the fastest-growing large economy in the world. By comparison, China is expected to grow at around 5% and the US at about 2%. Importantly, this growth came alongside a sharp moderation in inflation, which fell to 0.71% in November, well below the Reserve Bank of India's lower threshold of 2%.

2 It wasn't an easy environment, right?