New Delhi. The economies of the world are going through a kind of fatigue, but India is continuously growing rapidly even in this environment. Harvard economist Jason Furman recently shared a graph showing post-pandemic GDP recovery and India appears to be ahead of all those major economies. In comparison to America, China, Euro Area and Russia, both India’s recovery and growth pace appear to be much stronger.
For India, this pace is not just a game of quarterly figures but it is a part of the bigger economic picture. Estimates show that India can become the third largest economy in the world by 2030 by becoming an economy of about 7.3 trillion dollars. Its foundation has been laid by domestic consumption, strong manufacturing, booming construction and rapidly expanding service sector.
How is India’s growth different from the rest of the world?
India’s real GDP growth in the June quarter was 7.8 percent, which is the highest among all major economies. For comparison, China was down 5.2 percent, Indonesia 5.2 percent, America 2.1 percent and European countries were less than 1 percent. This means that India’s economy is not only stable but is also continuously moving upwards even in the period of global recession.
This strength of the Indian economy comes from many domestic factors. Improvement in private investment, wage growth, better rural demand and stable government capital investment have further strengthened this pace. Market signals suggest that domestic consumption is still strong and companies’ capex plans may further support growth in the next few years.
How IMF projections support India
IMF’s latest projections present a stable and strong growth outlook for India. India is expected to grow at a rate of 6.6 percent in 2026, which is considered the fastest globally. Whereas China’s growth rate is likely to slow down to 4.8 percent during the same period. It is clear from this difference that India’s growth is not just a short-term recovery but a sign of structural shift.
Manoranjan Sharma, Chief Economist of Infomerics Ratings, also believes that India’s steady growth rests on three main pillars. First, large and strong domestic consumption, second, revival of manufacturing and third, rapid expansion of the service sector. Together, these three have protected India’s GDP from external shocks to a great extent.
Why India’s recovery after the pandemic is better than other countries
India’s recovery after the pandemic has been exceptional in many respects. While demand weakened in many countries, India’s domestic market became the biggest driver of recovery. Structural reforms such as the Production Linked Incentive Scheme, expansion of digital payments and rapid infrastructure development have given additional impetus to the economy. The US and Europe are struggling with inflation and geopolitical instability, while China’s economy is under pressure from the real estate crisis. In comparison, India’s economic environment remains stable and appears reliable for investors.
