According to the World Economic Forum's May 2026 Chief Economists Outlook, India is viewed as a bright spot in the global economy, with 52% of economists anticipating strong or very strong growth over the next year. This positions India as the most promising growth market among major economies, with a projected growth rate of 6.5% for FY27. The report also ranks India as the second most attractive destination for multinational companies, following the United States. However, the country faces challenges from inflation, with 61% of economists expecting high inflation rates due to rising energy and food prices linked to the ongoing conflict in West Asia. Specifically, 41% foresee significant increases in energy prices, while 33% predict sharp rises in food costs. Retail inflation has already increased to 3.5% year-on-year in April 2026. Despite these inflationary pressures, 69% of surveyed economists believe the Reserve Bank of India will keep the policy rate unchanged at 5.25%.