In a region grappling with slowdowns, India is set to eclipse China and other economies through 2027, per the Asian Development Bank’s fresh analysis. The Friday report flags a broader deceleration in developing Asia-Pacific growth to 5.1% for 2026-27, down from 5.4% previously.
India bucks the trend with forecasted 6.9% expansion next year, climbing to 7.3% in 2027 on the back of vigorous household spending. This contrasts sharply with peers facing headwinds from geopolitical strife and trade disruptions.
The report details how most regional economies will stutter this year and beyond, but India’s sturdy domestic base—bolstered by steady jobs and infrastructure pushes—keeps it ahead. Downward pressures linger, however.
China faces particular hurdles: growth slipping to 4.6% in 2026 and 4.5% in 2027, hampered by property woes and export softness. ADB’s Albert Park points to Middle East unrest as a paramount risk, potentially inflating commodity costs and straining finances.
Global trade policy swings pose additional threats. Counterbalances include resilient consumer spending and AI-driven demand surges. Elevated oil prices might persist unless tensions de-escalate.
As Asia navigates uncertainty, India’s momentum signals strength and opportunity, potentially reshaping regional dynamics.
