India Contributes 17% to Global Growth, De-Risks Economy: Jaishankar

External Affairs Minister S Jaishankar pointed to recent data to underscore the scale of India's impact, stating, "If you look at the IMF expectation of global growth this year, India contributes 17 per cent of the total global growth." This assessment aligns with figures released by the IMF, which indicate India is set to account for a substantial 17 per cent of global real GDP growth in 2026, maintaining its status as the fastest-expanding major economy on the planet.

The data places India at the forefront of the IMF's top 10 contributors, notably ahead of the US, which is anticipated to contribute 9.9 per cent to the world's real GDP growth.

Other key players include Indonesia at 3.8 per cent, Turkiye at 2.2 per cent, and Saudi Arabia at 1.7 per cent. Vietnam follows with 1.6 per cent, while Nigeria and Brazil are both projected to contribute 1.5 per cent each. Rounding out the list, Germany holds the 10th position with a 0.9 per cent contribution, as other European nations fail to secure a spot in the top 10.

The Minister articulated a vision of growth that transcends national borders, framing India's industrial and economic ascent as a tool for global stability.

"Today, for us, as we grow, we are very conscious. It's not just about us. We help to de-risk the international economy. We help to give more possibilities," External Affairs Minister S Jaishankar remarked, adding that the country is "creating more options" for its global allies.

He explained that this expansion serves as a catalyst for international cooperation, noting, "Now, when a country like us, an economy like us, builds more capacities, we also open up options for other partners."

The International Monetary Fund (IMF) has notably adjusted its economic growth forecast for India for 2025, raising it by 0.7 percentage points to 7.3 per cent.

In its recent World Economic Outlook update, the IMF noted that this upward revision reflects "strong momentum in the fourth quarter of the current financial year ending on March 31, 2026." Looking further ahead, the IMF has projected 6.4 per cent growth for the 2026-2027 financial year.

Even with this anticipated moderation, the agency emphasised that India remains a "key driver of growth among emerging market and developing economies."

In a move to further integrate with the world market, External Affairs Minister S Jaishankar noted that India is actively "adding to market possibilities and market access," while simultaneously "negotiating and concluding more free trade agreements for countries to avail of it."

On a broader scale, global growth is expected to remain stable at 3.3 per cent in 2026, bolstered by "easing trade tensions, accommodative financial conditions, and a surge in investment linked to technology, particularly artificial intelligence."

Regarding domestic conditions, the IMF indicated that inflation in India is "expected to go back to near target levels after a marked decline in 2025," largely due to "subdued food prices," which should provide a significant boost to local demand.

However, the report also contained a note of caution, warning that "AI-driven productivity gains could lead to a pullback in investment and tighter global financial conditions," potentially creating "spillover effects for emerging economies."

Reinforcing the idea that India's strategic outlook is truly global in scope, External Affairs Minister S Jaishankar stressed the importance of an expansive presence.

"And along with that, we are trying to create a global footprint so that our impact on the international economy and the de-risking of the world is as impactful, it's far-reaching as possible. So, for us today, really, we don't think of any region as too far off," he stated.

- ANI