India to drive 17% of global GDP growth in 2026, growth seen at 7.3%: IMF

New Delhi: India is projected to contribute about 17% to global real GDP growth in 2026 as it continues to remain the world’s fastest-growing major economy, according to the latest data compiled by the International Monetary Fund (IMF).

Among the other countries in the IMF’s top 10 list, the USA is expected to contribute 9.9% to the world’s real GDP growth, followed by Indonesia with 3.8%, Turkiye 2.2%, Saudi Arabia 1.7%, Vietnam 1.6%, while both Nigeria and Brazil are expected to contribute 1.5% each. Germany, which is ranked at the 10th spot, is expected to contribute 0.9% to the global GDP growth, while the rest of the European countries do not figure on the IMF’s top 10 list.

The IMF has already raised India’s economic growth projection for 2025 by 0.7% points to 7.3%.

In the World Economic Outlook update, the IMF said the upward revision reflects strong momentum in the fourth quarter of the current financial year ending on March 31, 2026. Meanwhile, the IMF projected 6.4% growth in the next financial year of 2026-2027, adding that despite the expected moderation, India remains a key driver of growth among emerging market and developing economies.

It said global growth is projected to hold steady at 3.3% in 2026, supported by easing trade tensions, accommodative financial conditions and a surge in investment linked to technology, particularly artificial intelligence.

The IMF said the inflation in India is expected to go back to near target levels after a marked decline in 2025, driven by subdued food prices, offering additional support to domestic demand. However, the IMF cautioned that AI-driven productivity gains could lead to a pullback in investment and tighter global financial conditions, with spillover effects for emerging economies.

IANS