India will add 17% to global GDP: IMF

India is expected to contribute nearly 17% of global real GDP growth in 2026, reinforcing its status as the fastest-growing major economy in the world, according to the International Monetary Fund (IMF),

In the World Economic Outlook update, the IMF has also revised India’s growth forecast for 2025 upward to 7.3%, citing strong economic momentum in the final quarter of the financial year ending March 31, 2026. While growth is projected to moderate to 6.4% in FY2026-27, India is still expected to remain a key driver among emerging and developing economies.

Globally, economic growth is forecast to remain steady at 3.3% in 2026. The IMF attributes this stability to easing trade tensions, accommodative financial conditions, and rising investment in advanced technologies such as artificial intelligence.

Inflation in India is also expected to return close to the central bank’s target, largely due to easing food prices. Lower inflation could further support domestic consumption and investment.

However, the IMF cautioned that rapid productivity gains driven by AI could potentially lead to reduced investment demand and tighter financial conditions worldwide, which may have spillover effects for emerging economies.

Despite these risks, India’s strong domestic demand, policy stability, and expanding technology sector continue to position it as one of the primary engines of global economic growth in the coming years.