Global Slowdown Ahead, But India Shines: Key Economic Trends

India to Remain Fastest-Growing Economy in 2025 & 2026: Key Highlights
According to Morgan Stanley’s Global Investment Committee (GIC), India will continue as the world’s fastest-growing economy, with real GDP growth at 5.9% in 2025 and 6.4% in 2026. This growth stands out as global expansion slows, making it a critical topic for competitive exams.

Key Takeaways:
Global Slowdown Expected: World GDP growth may drop from 3.5% (2024) to 2.5% (2025) due to trade uncertainties.
US & Eurozone Struggle: The US may see growth fall to 1% in 2025-26, while Europe battles weak consumption.
China’s Slowdown Continues: Growth may dip to 4% in 2025, impacted by trade tariffs.
India’s Strong Position: Reforms and domestic investments keep India ahead, with high equity valuations.
Asia’s Bright Spots: Singapore and UAE also show strong growth alongside India.


Why Is This Important for Exams?
Competitive exams like SSC, PSC, NID, NIFT, and FDDI frequently include questions on current affairs, economic trends, and global comparisons. Understanding India’s growth trajectory helps in:
GK & Economy sections of government exams.
Essay writing and interviews for design and management entrances.
Staying ahead with the latest data for last-minute revisions.


Sample Questions & Answers for Exam Prep
Q: According to Morgan Stanley, what is India’s expected GDP growth in 2026?
A: 6.4% (Q4-over-Q4 basis).
Q: Which region is expected to face the biggest trade shock in 2025?
A: Global economies, particularly the US and Eurozone.
Q: What is the forecasted GDP growth for China in 2025?
A: 4.0%.
Q: Why is India’s economy expected to remain strong despite global slowdown?
A: Due to domestic reforms and strong retail/institutional investments.
Q: Which countries, besides India, are overweight in Morgan Stanley’s report?
A: Singapore and the UAE.