New Delhi — India is projected to lead major Asia-Pacific economies in 2026 with gross domestic product growth of 6.6 percent and inflation at 4.2 percent, according to a report released on Monday.
The annual economic outlook for 2026 by the Mastercard Economics Institute said India’s growth will be supported by strong domestic demand, aided by monetary easing, tax reforms, GST rationalisation, and lower global commodity prices.
“Favourable demographics, rapid digitisation, and technological advancements continue to position India among the fastest-growing major economies, driving expansion in global capability centres and Tier 2–3 cities,” the report said.
Tourism is also emerging as a key growth driver, helping strengthen external stability and support local businesses. Destinations such as Goa, Rishikesh, and Amritsar are attracting experiential and spiritual travelers, the report noted.
The outlook highlighted India’s accelerating adoption of artificial intelligence, reflected in an AI Enthusiasm Index score of 8, underscoring the country’s readiness to capture the next wave of productivity gains. This momentum reinforces India’s role as a key contributor to the broader Asia-Pacific economic outlook.
At the global level, the Mastercard Economics Institute expects real GDP growth to ease slightly to 3.1 percent in 2026, compared with an estimated 3.2 percent in 2025.
The report said the global outlook for 2026 is shaped by a mix of risks and opportunities. Fiscal stimulus and rapid technological progress, particularly the integration of AI into business operations, are expected to support growth, though benefits are likely to vary across regions.
“Given its centrality to global trade, Asia Pacific has shown remarkable resilience at a time when tariff uncertainty and shifting supply chains have threatened to upend international commerce,” said David Mann, Chief Economist for Asia Pacific at Mastercard.
“The largely positive outlook for the region’s consumers highlights a defining feature of 2026: even as trade realignments and technological shifts dominate the global narrative, microeconomic conditions across much of Asia Pacific are improving. For businesses, staying attuned to these underlying demand trends will be essential,” he added.
Despite global realignments, Asia Pacific’s position at the center of global supply chains remains intact, with India, ASEAN, and the Chinese mainland playing expanding roles as companies reconfigure sourcing and investment strategies, the report said. (Source: IANS)
