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India Overtakes US in Global Growth Share, Says IMF Data

India ranks ahead of US in driving global growth, Elon Musk flags power shift

Written By : Somatirtha
Reviewed By : Sanchari Bhaduri

Billionaire entrepreneur Elon Musk has said the global ‘balance of power is changing’, citing new data from the International Monetary Fund that places India among the world’s leading contributors to economic growth, ahead of the United States.

Musk shared a chart based on the IMF’s January 2026 projections ranking the top contributors to global real GDP growth this year.

India and China to Power Nearly Half of Global Growth

According to the chart, China and India together are expected to account for 43.6% of global economic growth in 2026. India alone is projected to contribute 17%, while the United States is expected to contribute 9.9%.

The data shows that global economic momentum is moving eastward because emerging Asian economies now contribute more to economic growth while advanced economies experience slower growth.

Musk’s comments come amid heightened global uncertainty and rising trade tensions, including tariff measures announced by US President Donald Trump targeting countries such as China and India.

IMF Raises Global Growth Outlook for 2026

The IMF projects global growth rates of 3.3% for 2026 and 3.2% for 2027, according to its latest forecast, which is more accurate than its October 2025 prediction. The improvement results from two factors, including advanced technological development and the combined effects of fiscal and monetary support, flexible financial conditions, and the private sector’s capacity to respond to modifications in trade policies.

The world will experience decreasing inflation rates, while the United States will achieve its inflation target at a slower pace. The IMF identified major risk factors that could lead to technology-driven growth expectations reassessment and rising geopolitical conflicts.

Also Read: Khosla vs Musk: Silicon Valley’s MAGA Culture War Explodes

India’s Growth Outlook Revised Upward

According to the IMF, India will experience 7.3% economic growth in 2025, which represents a 0.7 percentage point increase based on stronger third-quarter results and fourth-quarter growth momentum.

The economy will experience 6.4% growth in both 2026 and 2027 because temporary and cyclical elements will no longer be present. The inflation rate in India will approach its target after reaching 2025, which follows a period of significant decrease that will be aided by low food costs.

These projections demonstrate India’s increasing power to determine international economic results throughout the world.

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