Emerging Growth Spotlight: India's Resilience Amid Global Economic Challenges

A majority of chief economists expect a weaker global economy in 2026, but see India driving South Asia's growth. India's economic reforms, AI investments, and a 'goldilocks' economy are key factors, despite trade headwinds. The WEF's report highlights surging AI investments and challenges in fiscal policies.

Despite recent improvements, most chief economists predict a decline in global economic conditions this year. However, India is seen as a significant growth driver in South Asia, according to a new survey.

The World Economic Forum's Chief Economists Outlook, released ahead of the Davos meeting, highlights India's economic momentum driven by reforms, AI adoption, and investment from US tech firms. Inflation in South Asia has decreased, and monetary policy is expected to remain stable.

Globally, key trends include AI investment surges, critical debt levels, and evolving trade alignments. The survey also forecasts a less optimistic future for cryptocurrencies while noting varied expectations for AI-driven productivity gains across sectors.

(With inputs from agencies.)