India driving South Asia as world’s brightest growth spot: WEF

New Delhi: Despite a modest improvement in recent months, a majority of chief economists expect global economic conditions to weaken this year but see India anchoring South Asia as the brightest growth spot despite mounting trade headwinds, a new survey showed on Friday.

In its latest Chief Economists Outlook report, released ahead of the Davos annual meeting next week, the World Economic Forum said the global economic outlook has improved modestly but remains uncertain, with asset valuations, mounting debt, geo-economic realignment, and rapid deployment of artificial intelligence creating both opportunities and risks.

Nearly 53 per cent of chief economists surveyed expect global economic conditions to weaken in the year ahead, down from 72 per cent in September 2025, it said.

The report, drawing from consultations and surveys with chief economists from the public and private sectors worldwide, said South Asia has returned to the top of the regional growth outlook.

Two-thirds of the chief economists surveyed expect strong (60 per cent) or very strong (6 per cent) growth, a substantial improvement compared to 31 per cent in the September edition of the report.

“South Asia remains the brightest growth spot among emerging regions, with India anchoring the outlook despite mounting trade headwinds,” it said. Despite US tariffs on Indian exports, the Reserve Bank of India’s recent assessment of a ‘goldilocks’ economy reflected a surge of 8.2 per cent year-on-year real GDP growth in the September quarter alongside near-zero inflation.

The WEF said India is continuing on its reform pathway by reducing employment restrictions, and AI adoption is surging alongside investments from US technology firms.

“Over one-third of respondents (36 per cent) anticipate a significant positive impact of AI investments on growth over the next two years, it added.