New Delhi, Dec 15 (NationPress) A report released on Monday indicates that India is set to outpace other major economies in the Asia-Pacific region in 2026, achieving a GDP growth rate of 6.6% and an inflation rate of 4.2%.

This remarkable growth is expected to be fueled by robust domestic demand, facilitated by monetary easing, tax reforms, GST rationalization, and declining global commodity prices, as outlined in the annual economic forecast for 2026 by the Mastercard Economics Institute (MEI).

The report emphasizes that favorable demographics, swift digitization, and technological innovations continue to position India among the fastest-growing major economies, leading to increased activity in global capability centers and Tier 2–3 cities.

Tourism is emerging as a significant driver of growth, enhancing external stability and supporting local businesses, with popular destinations like Goa, Rishikesh, and Amritsar attracting experiential and spiritual travelers.

Moreover, an accelerating trend in AI adoption, evidenced by an AI Enthusiasm Index score of 8, highlights India’s readiness to leverage the next wave of productivity gains, solidifying its role as a major contributor to the economic landscape of the Asia-Pacific.

On a global scale, MEI forecasts a slight moderation in real GDP growth to 3.1% in 2026, down from 3.2% in 2025.

The global economic outlook for 2026 is characterized by a dual set of risks and opportunities. Fiscal stimulus and rapid technological advancements—especially the integration of AI into business operations—are anticipated to serve as significant growth catalysts, although the benefits may not be evenly distributed across regions.

“Asia Pacific has demonstrated remarkable resilience amid tariff uncertainties and shifting supply chains that threaten international trade,” stated David Mann, chief economist for Asia Pacific at Mastercard.

“The predominantly positive outlook for the region’s consumers underscores a defining characteristic of 2026: despite the prominence of trade realignments and technological transitions in the global narrative, microeconomic conditions in much of Asia Pacific are improving. Businesses must remain attuned to these underlying demand trends,” Mann added.

In spite of global realignments, Asia Pacific maintains its pivotal role within global supply chains, with India, ASEAN, and the Chinese Mainland expanding their influence as companies reconfigure sourcing and investment strategies, according to the report.