IMF Calls India a Global Growth Engine Amid Trump-Induced Global Turmoil

The International Monetary Fund (IMF) has described India as a key growth engine for the global economy, reflecting its relatively strong expansion outlook at a time when growth in several advanced and emerging economies is moderating.

According to the IMF’s latest assessments, India remains among the fastest-growing major economies, supported by domestic consumption, investment activity, and services-sector momentum. The Fund has projected India’s growth for the current fiscal year to remain well above the global average, reinforcing its role in contributing to overall world output. "What we have seen in India is that India is a key growth engine for the world," Julie Kozack, Director of the IMF's Communications Department, said while replying to a question. 

Growth Outlook Versus Global Trends

While global growth is expected to remain subdued due to tighter financial conditions, geopolitical uncertainty, and slowing demand in some advanced economies, India’s projected growth rate continues to stand out.  India is currently the only major economy projected to grow above 6% in 2026, nearly double the global average. As other large economies like China face structural slowdowns (forecasted at 4.2% for 2026) and the Eurozone struggles with stagnation (forecasted at 1.1%), India is expected to contribute approximately 15-17% of total global GDP growth in the coming year.

The IMF has repeatedly highlighted that India’s expanding economic size and sustained growth rate make it a significant contributor to global GDP growth, particularly as other large economies face structural or cyclical slowdowns.

Also read: Budget 2026: 5 Key Expectations And Hurdles Shaping India's Solar Sector

Political Remarks Put Economy in Spotlight

The IMF’s assessment comes against the backdrop of political remarks questioning the state of India’s economy.

US President Donald Trump, while speaking in the context of trade and tariffs, recently described India’s economy as “dead.” Separately, Congress leader Rahul Gandhi echoed similar language, stating that “everybody knows” the economy is not performing well.

These remarks triggered responses from the ruling Bharatiya Janata Party (BJP), which cited IMF growth projections and official economic data to counter the claims. Trump’s remarks were made amid ongoing trade friction, including tariff measures affecting Indian exports to the US. Economists note that while such external risks could impact specific sectors, India’s growth outlook remains largely driven by domestic factors, insulating it to some extent from global shocks.

Also read: How Tiger Global’s India Exit Structure Led to a ₹14,000 Crore Tax Claim