Allianz Research projects India GDP growth at 7.5% in 2026

India's GDP growth seen at 7.5% in 2026, to moderate to 7.1% in 2027 and 6.8% in 2028: Allianz Research

New Delhi, September 29

The report showed India remaining one of the fastest-growing major economies even as global growth is expected to remain subdued over the next few years.

According to the report's growth forecast table, India's GDP growth is estimated at 7.5 per cent in 2026, unchanged from 2025, before easing to 7.1 per cent in 2027 and further in 2028 to 6.8 per cent.

For the global economy, Allianz Research said, "Global GDP growth slows from +3.0% in 2025 to +2.6% in 2026, recovers to +2.8% in 2027, and eases again to +2.6% in 2028."

Asia is expected to remain the key driver of global growth as it "stays the main engine at around +4.4%," the report said.

On inflation, Allianz Research expects price pressures in India to rise next year. Its inflation forecasts show India's inflation at 4.7 per cent in 2026, increasing to 5.2 per cent in 2027 before easing to 4.2 per cent in 2028.

The report also expects tighter monetary conditions in India later this year.

"On the central bank front, we see India joining South Korea in a tightening cycle in Q4," Allianz Research said, while noting that monetary policy across the region would remain sensitive to energy and food inflation as well as currency pressures.

The broader global outlook remains dependent on developments in energy markets, bond markets and artificial intelligence-related investment. Allianz said its baseline assumes these pressures ease rather than intensify, while warning that its growth, inflation and interest-rate projections depend on those assumptions holding.

— ANI