New Delhi, December 15 (IANS). India will be at the forefront among the major economies of the Asia-Pacific region in the coming year i.e. 2026. India’s GDP is projected to grow by 6.6 percent, while the inflation rate is expected to be around 4.2 percent. This information has come out in a report released on Monday.
According to the annual economic outlook released by Mastercard Economics Institute (MEI), this faster growth will be driven by strong domestic demand within the country, which will be boosted by the government’s easy interest rates, tax reforms, changes in GST and falling commodity prices across the world.
The report said that India’s young population, rapid use of digital technology and development of new technologies make India one of the fastest growing economies in the world. This will increase employment and development in smaller cities (Tier-2 and Tier-3) and IT centres.
Tourism is also strengthening India’s economy. Local people and small traders are benefiting from tourists visiting places like Goa, Rishikesh and Amritsar.
The report also said that India is rapidly adopting Artificial Intelligence (AI) and has got 8 points in AI Enthusiasm Index, which will increase work efficiency and productivity.
Globally, the economic growth rate in 2026 is estimated to be 3.1 percent, which will be slightly lower than 2025 (3.2 percent). Although new technologies like AI and government spending will help in development, not every country will benefit equally.
“With its central role in global trade, the Asia Pacific region has shown remarkable resilience at a time when tariff uncertainty and changing supply chains threaten to disrupt international commerce,” said David Mann, Mastercard’s Asia Pacific chief economist.
The report said that despite changes in trade and new challenges, the Asia-Pacific region remains a strong leader in global trade. India, Association of Southeast Asian Nations (ASEAN) countries and China are playing an important role in the supply chain.
–IANS
Durgesh Bahadur/ABS