India is projected to contribute 17% to the global real GDP growth in 2026, maintaining its position as the fastest-growing major economy worldwide, according to the latest IMF data. The USA is expected to contribute 9.9%, Indonesia 3.8%, Turkiye 2.2%, Saudi Arabia 1.7%, Vietnam 1.6%, while Nigeria and Brazil are each expected to contribute 1.5%. Germany, ranked 10th, is projected to contribute 0.9%, with other European countries not making the top 10 list.
The IMF has raised India’s economic growth projection for 2025 by 0.7 percentage points to 7.3%. In its World Economic Outlook update, the IMF attributed this upward revision to strong momentum in the fourth quarter of the current financial year ending on March 31, 2026. For the next financial year of 2026-2027, the IMF projects 6.4% growth, emphasizing India’s role as a significant growth driver among emerging market and developing economies.
Global growth is forecasted to remain steady at 3.3% in 2026, supported by reduced trade tensions, favorable financial conditions, and increased investment in technology, particularly artificial intelligence. The IMF anticipates that India’s inflation will return to target levels after a notable decline in 2025, driven by subdued food prices, which will further boost domestic demand. However, the IMF warns that productivity gains from artificial intelligence could lead to reduced investment and tighter global financial conditions, impacting emerging economies.
