India's economy contracted by 5.8% during the pandemic before rebounding by 9.7% in 2021. It subsequently expanded by more than 7% annually for four consecutive years, according to Kim's assessment. The sustained momentum has repeatedly prompted economists to revise their growth projections upwards as quarterly GDP data became available.
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If current forecasts materialise, India could extend its run of annual growth above 7% beyond the five-year streak recorded in 2003-2007.
India’s 5-yr growth average among its highest since 1960
The scale of India's recent performance becomes clearer when measured over several years rather than through individual quarterly or annual figures.
According to Kim, India's average annual growth during 2021-2025 was 7.83%, making it the second-highest five-year average in data going back to 1960. The figure was marginally below the 7.89% average recorded between 2003 and 2007.
The comparison is significant because sustaining high growth over an extended period is generally more difficult than delivering a strong rebound in a single year. India's post-pandemic expansion has also taken place amid a substantially larger economic base than the one it had during the early 2000s.
Kim pointed out that India's GDP was slightly above $1 trillion in 2007, whereas it is now approaching $4 trillion. Consequently, the same 7% growth rate today translates into a much larger absolute addition to economic output than it did nearly two decades ago.
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The distinction matters when assessing India's economic trajectory. A large economy growing rapidly can add substantial output to the global economy, strengthening its position in international trade, investment and economic policymaking.
IMF, World Bank, ADB revise India's growth outlook
The latest projections from the three major institutions indicate that India's growth outlook remains resilient, with forecasts for the current and next fiscal years clustered around or above 7%.
- The World Bank's recent forecast puts India's growth at approximately 7.1% for 2026-27, compared with its previous estimate of 6.6%. For 2027-28, its projection is around 7.2%.
- The IMF has raised its projection for 2026-27 from approximately 6.5% to 7%, while its forecast for 2027-28 stands at around 7%.
- The ADB has revised its growth estimate for 2026-27 from approximately 6.6% to 7%. However, its projection for 202728 has edged down from around 7.3% to 7.1%.
The broad direction is clear: the institutions expect India to retain a relatively high growth rate over the medium term. However, the projections are not guarantees, and differences in the estimates reflect their respective assessments of the domestic and global economic environment.
India's economy has nearly quadrupled in dollar terms since 2007
India's rising economic scale adds another dimension to the growth story. The country's GDP has expanded from a relatively small base in the 1960s to an economy approaching $4 trillion in recent years. Growth accelerated particularly after the turn of the century, although the trajectory has included periods of disruption and volatility.
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The pandemic produced a sharp contraction in economic activity, followed by a strong recovery. The latest growth streak builds on that rebound, but its significance lies in the years of expansion that followed rather than the recovery alone.
Kim argued that India's current performance deserves attention precisely because it is occurring at a much larger scale. Sustaining growth above 7% as the economy expands requires a considerably larger increase in output than it did when India's GDP was around $1 trillion.
India's economic performance is also drawing attention because of its demographic scale. With a population of approximately 1.4 billion, prolonged expansion has the potential to create opportunities for employment, investment and consumption, although the extent to which those gains are distributed across households and sectors remains an important consideration.
Can India become the world's third-largest economy by 2030?
India is projected to become the world's third-largest economy around 2030, according to the outlook cited by Kim. Sustained growth above 7% would strengthen that trajectory, although the timing and ranking will also depend on exchange rates, inflation and the performance of other major economies.
The country's rise has coincided with a period of significant global economic uncertainty. For India, maintaining momentum will depend on its ability to sustain investment, improve productivity, generate jobs and expand the benefits of economic growth across its large population.
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The growth figures alone do not resolve these challenges. Nor do they establish that India will consistently outperform every other major economy. But a multi-year expansion at this pace, if sustained, would represent a substantial achievement for an economy of India's size.
Kim acknowledged that significant challenges remain, while arguing that the country's recent performance merits recognition. He also expressed hope that the next round of quarterly GDP data would again prompt economists and major institutions to raise their forecasts.