India leads global economic growth

India's economy continues to grow at a solid pace, driven by resilient domestic demand and favorable macroeconomic policies. In this context, GDP growth is expected to reach 6.3% in 2026, the highest among the major emerging economies and well above the global average (2.6%). 

Despite its strong momentum, India's economy is also suffering from the effects of US protectionist policies and the deterioration of the international trade climate. The growth forecast for this year (6.3%) is below the estimate for 2025 (7%), according to a recent study by Crédito y Caución. 

It should be remembered that, last August, the United States raised import tariffs from 25% to 50%, directly and rapidly impacting the volume of Indian exports to the United States. Specifically, they fell by 22% compared to the same month last year. Sectors such as textiles, pharmaceuticals, and manufactured goods are facing a sharp decline in competitiveness.

In this scenario, the Indian government has accelerated a broad trade diversification program, which recently materialized in a historic agreement with the European Union. In addition, it is expected to continue deepening its cooperation with the United States in certain strategic sectors, such as semiconductors, cybersecurity, critical minerals, and defense equipment manufacturing.

On the other hand, the government continues to strengthen measures to stimulate local economic activity. It should be remembered that this is a more domestically oriented economy. In this regard, the recent fiscal measures approved by the government on goods and services will stimulate demand, while the easing of financing conditions should also support private investment.

The credit insurer's report also predicts that rural demand will strengthen thanks to good weather conditions. This recovery is further supported by easing inflationary pressures and rising wages, which reflect improved employment conditions and will contribute to increased consumption.

In short, the development of measures to stimulate the local economy and new trade agreements will drive India's growth in 2026 and 2027 to above 6%, thanks to resilient domestic demand and favorable macroeconomic policies.