IMF Managing Director Kristalina Georgieva praised India’s AI leadership, saying artificial intelligence could lift global growth, while warning of “tsunami-like” labour disruption and urging faster digital adoption and skills development.
The potential disruption of AI on labour could be “tsunami-like”, said IMF MD, estimating that around 40 percent of jobs could be impacted
The impact could rise to as much as 60 per cent in advanced economies, while for India the figure is expected to be lower, around 26 per cent.
The IMF’s January 2026 global outlook projects worldwide growth at 3.3% in 2026 and 3.2% in 2027, noting that technology investments, fiscal and monetary support, and private-sector adaptability are helping offset shifts in trade policy.
Elon Musk highlighted IMF projections showing China and India as the top contributors to global GDP growth in 2026, saying “The balance of power is changing” amid shifting economic dynamics.
At the World Economic Forum in Davos, India’s IT minister rejected the IMF chief’s suggestion that India is a second-tier AI player, arguing the country is building capabilities across the entire stack and already ranks among the global leaders
Stronger-than-expected momentum prompts upgrades even as growth is seen moderating beyond next year
IMF spokesperson Julie Kozack noted that the latest economic data from India has come in stronger than expected, reinforcing the country's role as a major driver of global growth
Converting debt into jets and military stakes might make for colourful headlines, but it does nothing to address the fundamental economic rot that has gripped Pakistan for decades.
Pakistan’s latest loan solves nothing. It only postpones the next crisis. The IMF may have stabilised the numbers, but it has not stabilised Pakistan.
Under IMF pressure, Pakistan is privatising loss-making Pakistan International Airlines (PIA) to meet fiscal reform conditions, reduce debt, and secure bailout funds, as decades of mismanagement and financial collapse made action urgent.
The IMF retains a ‘C’ grade for India's GDP data due to some shortcomings, yet praises India’s impressive 8.2% GDP growth, fiscal management, digital infrastructure, and robust job creation under Modi’s leadership
The growth rate in GST revenue at 0.7 percent was the slowest since the pandemic, provisional data showed
The 8.2 per cent gross domestic product (GDP) growth, which follows a 7.8 per cent expansion in the preceding April-June quarter, helped India retain the title of the world's fastest-growing major economy.
The IMF's growth and policy projections for India are entirely contingent on one factor: how soon the 50 percent US tariffs are rolled back
Indian authorities disagreed with IMF's baseline scenario that US tariffs would remain indefinitely
Executive Directors commended India’s “very strong economic performance and resilience,” noting that growth has remained robust despite global uncertainty
The new description of the country’s de facto currency regime is likely to include references to a crawling peg
Beyond governance, India has repeatedly warned that IMF funds indirectly enable Pakistan’s security establishment, which continues to patronise terror groups targeting Indian territory.
Disinflation was continuing, but headline inflation would still be around 3.5% in G20 countries in 2025, the IMF said.
Inflation forecast cut to 2.8% as economy shrugs off tariff impact; FY27 growth seen at 6.2%
The setback deepens economic uncertainty and threatens investor confidence in Pakistan at a time when policy credibility is critically low.
Georgieva's remarks came ahead of next week's gathering of finance ministers and central bank governors at the World Bank and the IMF in Washington.
Rather than building financial independence, Islamabad continues to survive on loans. Its dependence on external bailouts is no longer just an economic problem but a geopolitical liability.
The timing of Pakistan’s underperformance comes amid renewed international scrutiny, particularly by India, which has intensified efforts to bring Pakistan back onto the FATF grey list.