ACCA Sees India Defying US Tariffs, Leading Global Growth in 2026

Despite significantly higher US import tariffs, India has shown strong economic resilience and is expected to remain the fastest-growing major economy in 2026, according to ACCA’s Global Economic Outlook.

The report highlighted that India recorded 8.2% year-on-year growth in the July–September quarter, supported by strong consumer spending. Low inflation, goods and services tax cuts, easing monetary policy, and sustained infrastructure investment by the government have also contributed to growth momentum.

ACCA said service sector activity is likely to remain robust, supported in part by exports. Recent reforms in labour markets and bankruptcy laws could further strengthen the economy’s medium-term outlook. Any trade agreement with the United States and continued low global oil prices would also support growth, while domestic food price volatility remains a risk factor.

Md. Sajid Khan, Director – India at ACCA, said: “It’s extremely encouraging to hear that the Indian economy has proved resilient to the large increase in US import tariffs, benefiting from robust consumer spending growth. Our report reveals that India is likely to remain the world’s fastest-growing major economy once again in 2026, and recent reforms could potentially help improve its longer-term performance.”