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Business

India’s growth lead over China to widen in 2027

hellohimachalse@gmail.com 16 Nov 2026 12 min ago

New Delhi: India is projected to remain among the world’s fastest-growing major economies, with GDP growth expected at 7.2 per cent in 2027, outpacing China’s projected 4.5 per cent expansion, according to a Goldman Sachs Research report.

The forecast for India is higher than the market consensus estimate of 6.8 per cent, although it is below the estimated 7.9 per cent growth for 2026.

The global economy is expected to expand 2.8 per cent in 2027, marginally higher than the estimated 2.7 per cent growth in 2026, as easing energy prices and sustained investment in artificial intelligence (AI) offset tighter financial conditions.

“We expect another year of solid but unremarkable GDP growth in 2027,” said Jan Hatzius, Chief Economist and Head of Research at Goldman Sachs.

China’s economy is projected to grow 4.5 per cent, slightly above the consensus estimate of 4.4 per cent. Exports are expected to support its growth despite subdued domestic consumption and continuing weakness in the property sector.

The investment bank expects the US, Japan and the UK to record growth above market consensus. South Korea and Taiwan are also expected to benefit from sustained global demand for AI-related exports.

Lower energy prices are likely to support economic activity next year. Goldman Sachs commodity strategists expect Brent crude to decline to $78 per barrel by end-2027, alongside a moderation in global liquefied natural gas prices.

However, Europe is expected to face lingering pressure as earlier energy price increases continue to feed through to consumers.

AI investment is expected to remain a major growth driver. Global nominal investment in the sector is projected to rise to $1.8 trillion in 2027 from $1.1 trillion in 2026, largely driven by higher hardware spending in the US.

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