25 September,2026 03:21 PM IST | Mumbai | mid-day online correspondent
Representational Image. File pic.
Driven by a resilient domestic demand, a World Economic Forum's (WEF) Chief Economists outlook report has raised India's growth in the current financial year at 6.7 per cent, while noting that the country has the strongest growth outlook among the geographies covered.
"Growth is expected to remain supported by resilient domestic demand, although higher energy prices continue to weigh on the outlook. Equity market performance has been less buoyant, with the Nifty 50 down 7.9 per cent since the start of the year, as of 19 August," the report said.
The report said that India continues to have the strongest growth outlook among the 10 geographies covered in the survey. These include Latin America and the Caribbean, Sub-Saharan Africa, United States, India, South-East Asia, Central Asia, Middle East and North Africa, Europe, Japan, China.
The survey was conducted from 4 to 20 August 2026, the WEF said the figures are based on 36 survey responses. Of chief economists surveyed, 98 per cent expect moderate or stronger growth over the next 12 months. This includes 74 per cent who anticipate strong or very strong growth, compared with 52 per cent in May, the report said.
The WEF's growth forecast is in line with global rating agencies such as Moody's and S&P Global Ratings that expect a 7 per cent growth and Fitch Ratings that projects a 6.9 per cent growth.
The report said the inflation expectations have moderated since May. Nearly 55 per cent of chief economists expect moderate inflation and 45 per cent expect high inflation over the next 12 months, as against 61 per cent who expected high or very high inflation in May.
It further said the Consumer price index (CPI) inflation increased to 4.8 per cent in August, moving above the Reserve bank of India's 4 per cent medium-term target while still remaining within the 2 to 6 per cent tolerance range.
Given this scenario, it said that 67 per cent of the respondents expect RBI's monetary policy to remain unchanged, while 24 per cent anticipate tightening.
The RBI had maintained a neutral policy stance and had kept the key lending rate or the repo rate unchanged at
5.25 per cent in August.
"Fiscal policy is also expected to remain broadly stable, with 72 per cent anticipating no change and 22 per cent expecting looser policy. Strong growth and inflation that remains within the tolerance range are broadly consistent with survey expectations of policy stability," it said.
On unemployment rate in the country, 70 per cent of chief economists expect no change over the next 12 months. However, respondents expect a change in the unemployment rate are divided with 17 per cent expecting an increase and 13 per cent anticipating a decrease.
"The unemployment rate among people aged 15 and above declined to 5 per cent in August from 5.1 per cent in July, while labour force participation increased from 55.4 per cent to 55.6 per cent during the same period. These developments point to relatively stable labour market conditions alongside strong activity, although sustained employment creation remains important.
