India’s economy has proved more resilient than expected amid global trade disruptions and higher US import tariffs, and is forecast to be the fastest-growing major economy in 2026, according to ACCA’s Global Economic Outlook.
The report stated that India expanded by 8.2% year-on-year in the July–September quarter, driven by strong consumer spending growth. Supportive factors include low inflation, cuts in goods and services tax, easing monetary policy, and continued government-led infrastructure investment.
ACCA said growth in the services sector is expected to remain strong, partly aided by exports. Policy reforms, particularly in labour markets and bankruptcy laws, could help lift economic performance over the coming years. However, developments in domestic food prices remain a key downside risk.
Md. Sajid Khan, Director – India at ACCA, said: “It’s extremely encouraging to hear that the Indian economy has proved resilient to the large increase in US import tariffs, benefiting from robust consumer spending growth. Our report reveals that India is likely to remain the world’s fastest-growing major economy once again in 2026, and recent reforms could potentially help improve its longer-term performance.”
