WEF sees India as bright spot amid Iran war

New Delhi: India remains the world's brightest growth spot despite mounting inflationary pressures and risks stemming from the West Asia conflict, with a majority of economists surveyed by the World Economic Forum (WEF) projecting strong growth over the year ahead.

According to WEF's May 2026 Chief Economists Outlook, 52% of respondents expect strong or very strong growth for India over the next 12 months, the highest among all major economies surveyed. Another 31% expect moderate growth. The report ranked India second after the US among the most attractive business destinations for multinational firms over next year.

"India's growth prospects continue to stand out," the report said, citing the country's infrastructure push, technology investments and broader opening in trade policy.


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India is projected to grow 6.5% in FY27, according to WEF.

But the country faces inflationary pressures from the conflict. Nearly 61% of chief economists surveyed, though, expect high or very high inflation in India over the next year, as energy and food costs rise globally.

Around 41% of respondents anticipate a significant increase in energy prices in India over the next 12 months, while 33% foresee a sharp rise in food prices. Retail inflation in the country edged up to 3.5% year-on-year in April, compared to 3.4% in March.

"Depreciation pressures have forced the central bank to shed $40 billion in foreign-exchange reserves in March to stabilise the currency," the report said.

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On monetary policy, 69% of respondents expect the central bank to keep rates unchanged. The RBI kept the policy rate at 5.25% in April and retained a neutral stance.

The report highlighted India's growing attractiveness for MNCs amid a rapidly changing global environment.