India outpaces China, Europe to emerge with strongest growth outlook globally: WEF survey

India has emerged as the global growth standout, with chief economists surveyed by the World Economic Forum turning increasingly bullish on its prospects even as the outlook for China weakens and Europe remains the weakest region, according to the assessment.

The September WEF Chief Economists' Outlook found that 98% of economists surveyed expect India to record moderate or stronger growth over the next 12 months, while 74% expect strong or very strong growth. The latter has risen sharply from 52% in the May survey.

The WEF said India continues to have the strongest growth outlook among the geographies covered, with growth supported by resilient domestic demand. It raised its forecast for India's GDP growth in fiscal 2026-27 to 6.7% in August, while cautioning that higher energy prices continue to weigh on the outlook.


The shift in sentiment around India stands in contrast to China, where about one in three economists now expect weak growth, and Europe, which remains the weakest region in the survey, with 61% anticipating weak or very weak growth.

The United States, Southeast Asia and Central Asia also received strong growth assessments, placing India in a group of the world's most positively viewed growth engines. But India was the only geography that the WEF specifically identified as having the strongest overall growth outlook.

India pulls further ahead as China outlook weakens

The divergence is particularly visible in the change from the previous survey. In May, 52% of economists had expected strong or very strong growth in India over the following 12 months. That share has now climbed to 74%, even as geopolitical and energy risks remain elevated.

China, meanwhile, has moved in the opposite direction. The WEF said its growth outlook had weakened, with around a third of economists anticipating weak growth.

Europe has improved modestly from the previous assessment but remains at the bottom of the regional outlook, with 61% of respondents expecting weak or very weak growth.

The broader global picture has improved. Fifty-six per cent of chief economists now expect the global economic outlook to remain stable or improve, compared with only 11% in May, when 89% had expected conditions to deteriorate.

But the recovery in sentiment remains fragile. Geopolitical conflicts were cited by 97% of respondents as a likely source of uncertainty over the next year, while 58% expect asset-price corrections.

For India, the latest assessment comes against a backdrop of persistent energy and geopolitical risks. The WEF said higher energy prices continue to weigh on the country's outlook, a significant concern for an economy that relies heavily on imported crude.

Domestic demand cushions external shocks

Yet domestic demand has continued to underpin India's growth expectations. The WEF's assessment suggests that economists see India's internal demand base as strong enough to sustain expansion even as external risks remain elevated.

The survey was conducted before India's latest official GDP data showed the economy grew 7.8% in the April-June quarter. The stronger-than-expected expansion has since led several forecasters to raise their growth estimates for the year.

There is also a notable divergence between India's growth credentials and its attractiveness as a destination for multinational companies. While economists gave India the strongest growth outlook, its ranking on favourable business environments slipped to fourth from second in May. Only 40% of respondents included India among their top three destinations, down from 56% previously.

(With inputs from PTI)