India is forecast to remain the world’s fastest-growing major economy in 2026 despite higher-than-expected US import tariffs, according to the latest Global Economic Outlook released by ACCA.
The report said the Indian economy expanded by 8.2% year-on-year in the July–September quarter, demonstrating stronger-than-expected resilience. Growth was supported by robust consumer spending, low inflation, easing monetary policy, cuts in goods and services tax, and strong government investment in infrastructure. Service sector growth is also expected to remain solid, aided partly by exports.
ACCA noted that recent policy reforms, including labour market and bankruptcy law reforms, could help improve India’s economic performance over the coming years. A potential trade deal with the United States and continued low global oil prices were identified as additional positives, while domestic food price developments remain a key risk.
Commenting on the outlook, 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.”
