India Expected to Outpace China in Economic Growth by 2027, AI Investment to Reach $1.8 Trillion: Goldman Sachs

New Delhi, November 15 (Daily Kiran) : India’s economic growth is projected to reach 7.2% in 2027, significantly outpacing China’s expected growth rate of 4.5%. This forecast comes from a recent report by Goldman Sachs, a global investment bank.

In 2026, India is anticipated to grow at 7.9%, while China’s growth rate is expected to be around 4.4%. The United States is also projected to see modest growth, with estimates of 2.3% in 2026 and 2.4% in 2027.

Goldman Sachs further predicts that global spending on artificial intelligence (AI) will soar to $1.8 trillion in 2027, a substantial increase from approximately $1.1 trillion in 2026. This rise is attributed to a $500 billion increase in hardware investments in the United States.

The bank estimates that AI investment will contribute 0.4 percentage points to global GDP growth next year. When factoring in the decline in semiconductor investments and related intellectual property exports, the expected contribution to U.S. GDP growth is around 0.6 percentage points.

Globally, the economy is anticipated to grow at a rate of about 2.8% in 2027, up from an estimated 2.7% this year. This improvement is attributed to a decrease in energy prices and sustained investment in AI.

Jan Hatzius, chief economist and head of research at Goldman Sachs, noted that this outlook reflects changes in factors shaping global economic activities, including energy costs, technology investments, and fiscal policy. He remarked, “We expect GDP growth to remain solid in 2027, but without any significant acceleration.”