IMF projections place India ahead of the US in contributing to global economic growth.
Elon Musk’s reaction highlights shifting economic influence from developed to emerging economies.
Strong domestic demand and investment continue to anchor India’s role in global expansion.
India is on track to overtake the United States in its contribution to global economic growth, according to fresh projections from the International Monetary Fund. The IMF estimates India will account for a significantly larger share of global real GDP growth than the US, placing it second only to China.
The data drew global attention after Elon Musk reacted to the chart, saying the ‘balance of power is shifting,’ a remark that underscored changing dynamics in the world economy.
IMF focuses on where new growth is coming from. By that measure, India is now adding more to global growth than the US, which has slipped to third place.
China remains at the top, but the gap between emerging and developed economies is becoming more visible. Slower growth in the US reflects tighter financial conditions and cooling demand, while countries like India continue to expand at a faster pace.
The IMF projects global growth at 3.3% in 2026 and 3.2% in 2027, slightly higher than its October 2025 forecast, signalling improved momentum in the world economy.
The upgrade shows that technology investments have exceeded expected levels while fiscal and monetary policies and financial conditions across major economies remain supportive.
The report shows that private-sector strength has protected the economy from trade policy changes and reduced global economic risks.
Elon Musk, the CEO of Tesla, shared statistics with his millions of followers on X, summarizing them in four words: "The balance of power is changing."
Musk frequently follows international news and shares his personal views in his published content. The ranking system shows that India will surpass the United States in creating worldwide economic expansion during 2026.
China and India together are projected to account for nearly 44% of the rise in the world's real GDP, according to the data, a clear indication that the economy is shifting eastward.
Also Read: Top International Mutual Funds in India to Watch in 2025: Global Growth Opportunities
Back home, the IMF data quickly stirred public debate. Government leaders used these metrics as proof that India is increasing its economic power. Critics wanted to proceed with restraint because they observed ongoing issues, which included income gaps and uneven private investment.
Most analysts believe that headline rankings hold less importance than the factors that support them. The process of sustaining growth will require productivity gains, manufacturing depth, and continuous development of skills and employment quality.
Also Read: India Overtakes US in Global Growth Share, Says IMF Data
India’s growing role in global growth brings both attention and responsibility. Holding this position will require consistency in policy, deeper reforms, and broader participation in economic gains.
At the global level, the latest IMF data displays that growth is no longer driven by the amount of data centres a nation possesses. It is shaped by economies that can sustain momentum, adapt to change, and translate scale into lasting strength.
1. What does the IMF chart actually measure?
It tracks where new global economic growth is coming from, measuring each country’s contribution to global real GDP expansion rather than comparing the absolute size of economies.
2. Why has India moved ahead of the US in global growth contribution?
India is growing faster, supported by strong domestic demand, public infrastructure spending, and resilient consumption, while the US is growing more slowly due to tighter financial conditions.
3. Does this mean India’s economy is now bigger than the US economy?
No. The data reflects growth contribution, not total economic size. The US economy remains larger, but India is adding more to global growth during this period.
4. Why did Elon Musk’s comment attract so much attention?
His remark amplified the IMF data beyond economic circles, reinforcing a broader perception that economic influence is gradually shifting towards Asia and emerging markets.
5. What does this shift mean for the global economy?
It signals a more balanced growth landscape, with emerging economies playing a larger role in driving global expansion, investment flows, and future economic influence.