Washington/New Delhi: Entrepreneur and billionaire Elon Musk had reacted to latest International Monetary Fund (IMF) data that shows India’s projected contribution to global economic growth exceeds that of the US.
“The balance of power is changing,” Musk posted on X with a list of the world’s 10 largest contributors to global real GDP, as in January 2026.
India and China together are expected to drive nearly 43.6 per cent of global growth, as per the IMF projection. India will alone account for 17 per cent. In contrast, the United States is projected to contribute 9.9 per cent.
This reaction by the former advisor to US president Donald Trump comes at a time when trade tensions prevail over growing tariffs on both India and China. The shift of economic momentum towards Asia at such a time will be an eye-opener for the Trump administration.
The IMF has projected global growth at 3.3 per cent in 2026 and 3.2 per cent in 2027, as per a report by News18. This is marginally higher than its October 2025 forecast.
The growth is attributed to strong investment in technology, continued fiscal and monetary support, accommodative financial conditions and the resilience of the privat
e sector, which together have helped cushion the impact of changing trade policies.
The IMF has noted that while global inflation is expected to ease, inflation in the US may return to target levels at a slower pace.
In its report, the IMF has flagged key downside risks, including a potential reassessment of technology-led growth expectations and the possibility of escalating geopolitical tensions.
India’s growth forecast has been revised upward by 0.7 percentage points to 7.3 per cent for 2025. IMF has cited stronger-than-anticipated performance in the third quarter and sustained momentum in the fourth quarter.
This growth is expected to moderate to 6.4 per cent in 2026 and 2027 as temporary and cyclical factors wane.
According to the report, inflation in China is projected to rise gradually from low levels, while in India’s case, it is expected to move closer to target after a sharp decline in 2025, largely due to softer food prices.
Meanwhile, Musk’s comment has come as a shot in the arm for the BJP-led NDA government in India. Union minister Kiren Rijiju took to X and urged Congress MP and Leader of the Opposition in the Lok Sabha Rahul Gandhi not to “disparage” India while criticising the government.
“I normally do not react to statements which are not made by Indians. I’m quoting @elonmusk only to sensitise Rahul Gandhi ji that, while criticizing the govt is a democratic right, do not disparage India & never belittle India’s achievement. Be a proud Indian,” Rijiju posted.
Rahul had earlier backed Trump’s statement, calling India a “dead economy”.