At the opening plenary of the Indiaspora Forum 2026, Gita Gopinath, former First Deputy Managing Director of the International Monetary Fund (IMF) and currently Professor of Economics at Harvard University, delivered a wide-ranging address on the shifting global economic landscape, the role of geopolitics, and the growing influence of the Indian diaspora.
Speaking during a fireside chat with Nivruti Rai, Managing Director and CEO of Invest India, Gopinath underscored the significance of the moment, noting the complex interplay between global conflicts and economic stability.
Gopinath expressed pride in the global Indian community, highlighting its growing influence across regions and sectors. “I’m proud to be part of the Indian diaspora and it is a phenomenal group of people around the world who are contributing to wherever they are but also contributing back to India. And congratulations on the report that you put out, the stats were really interesting in terms of how the Indian diaspora contributes.”
Her remarks came at a time of heightened geopolitical tensions, particularly in the Middle East, which she identified as a critical factor shaping the global economic outlook. “I think this is a particularly significant moment to recognize how much the world has changed because of what is happening in the Middle East right now in terms of the Iran conflict and how important geopolitics is for the global economy,” she said.
Gopinath emphasized the close connection between the Indian diaspora and the Middle East, noting its economic significance. “In this context, it also ties to the Indian diaspora because a third of the Indian diaspora lives in the Middle East, while a third of the remittances that come into India come from the Middle East. So, it’s a substantial part of what’s contributing to the Indian economy.”
READ: Indiaspora Forum 2026 opens in Bengaluru with a call for deeper diaspora engagement (March 23, 2026)
She also pointed to the uncertainty surrounding the evolving geopolitical situation. “If I want to pause and think about what might happen, I think right now we’re in a very… complicated juncture with respect to the war.” Detailing recent developments, she said, “We know that President Trump has said that […] he’s giving the Iranians an ultimatum, which is by the end of Monday, he would expect them to open the Strait of Hormuz, or he would be… destroying their power plants and infrastructure, and Iran has decided to respond and say that we will respond in kind.”
“At this point, think the question is what comes next is really difficult. And I think this captures a bit of the world that we’re living in right now, which is the tremendous uncertainty about global economic landscape,” she added.
Gopinath elaborated while speaking to The American Bazaar, “Well, firstly, I think we’re at a very sensitive juncture today because of the direction of the war.”
“The expectation is still that this conflict will be wound up pretty quickly. Now, there has been damage to energy infrastructure, which will take time to rebuild. So, the world economy is getting impacted by it in terms of oil prices, natural gas prices, fertiliser prices, and again, another bout of inflation is quite likely,” she said.
Despite global uncertainties, Gopinath struck an optimistic note on India’s trajectory. “I think there has been tremendous progress in India over the last many years. And I think somebody mentioned, it’s important to come to India many times. I’ve come numerous times and I’m always impressed with the changes going around and the potential.”
Speaking separately with The American Bazaar, Gopinath reflected on the broader significance of the forum and the role of the diaspora in a changing world.
“It is inspiring what MR [Rangaswami] and Sanjeev [Joshipura] have put together in terms of bringing Indian diaspora here to Bangalore. It’s a good moment to weigh in on how this diaspora is helping India, not just in terms of capital but also in terms of ideas and people and remittances. We’re at a moment where, with the Iran conflict, there’s a large number of our Indian diaspora that are caught up in the conflict, and that could affect remittances. So, there are many channels through which the diaspora and India interact,” she told The American Bazaar.
On artificial intelligence, she highlighted both its promise and risks. “What’s exciting me is that I think it is a phenomenal technology. I use it personally, and it helps me with my productivity. Its potential seems immense. What does make me worry about is about what might happen to jobs.”
“Now, I think eventually there will be enough new jobs that get created, that people will have jobs that they want, but we could have a costly transition where you could see an increase in unemployment rates,” she adds.
“There’s tremendous uncertainty around this, but again, it is a technology that can be ultimately very beneficial to society, if we make sure that it is. There’s also a chance that it could create a lot of disruption in society, not just in terms of jobs, but also in terms of applications in areas that can be detrimental to society.”
