News Context: UNDESA projects India to be the fastest-growing major economy at 7.4% for FY 2025–26.
- Drivers of Growth:
- Strong Domestic Demand: Resilient private consumption.
- Investment Cycle: A "crowding-in" effect where government capex leads to private sector investment.
- Digital Public Infrastructure (DPI): High efficiency in service delivery via the "India Stack."
- Challenges: The report warns of "imported inflation" due to global supply chain disruptions and geopolitical volatility.
- Wholistic Insight: Compare this with IMF's "World Economic Outlook." While global growth is slowing, India’s "Decade of Development" is supported by demographic dividends and structural reforms like the GST and IBC.
UPSC - 2027 - Prelims cum Mains - Foundation Course / Orientation on 08-03-2026