‘Balance of power shifting’ – Musk on India and China GDP growth

Elon Musk has said the global balance of power is shifting, citing IMF data indicating that India and China are projected to be the biggest contributors to global real GDP growth in 2026, ahead of the US.

“The balance of power is changing,” the tech billionaire wrote on X in response to a graphic citing IMF figures. The data show China as the largest contributor to global real GDP growth at 26.6%, followed by India at 17% and the US at 9.9%

Indian Finance Minister Nirmala Sitharaman responded to Musk’s post, saying India and China together accounted for 43% of estimated global GDP growth, the Financial Express reported. 

India’s economy is projected to record steady growth in the 2026-27 financial year, powered by strong domestic demand despite the impact of US tariffs, the South Asian nation’s Finance Ministry said on Thursday.

India’s Economic Survey projects growth of 7.4% in the 2026 financial year and estimates growth of between 6.8% and 7.2% in FY2027.

“The trend has been quite clear for a while – India and China have been growing at a faster pace than the rest of the world,” Anil Wadhwa, a former Indian foreign secretary, told RT.

Wadhwa said the two countries had both complementary and competing economies, noting that in some labor-intensive sectors they had exported similar goods in the past.

“The economy has changed course in China. Therefore, we find a situation in which the economies [of India and China] are becoming more and more complementary,” he said, adding that China was supplying high-technology goods and precision machinery, while India’s labor-intensive sectors were finding a market in China.

Wadhwa said India’s share of China’s textile market rose after the US imposed tariffs on New Delhi over its purchases of Russian oil.

India signed trade agreements with the UK, Oman, and New Zealand last year, and concluded a deal with the EU earlier this month, as it seeks to diversify its trade ties away from Washington.

Commenting on US President Donald Trump’s threats to impose tariffs on BRICS countries, Wadhwa said the group had “intrinsic strengths” and sufficient resources to continue growing despite external pressure.

He added that it was inevitable for economies that industrialized decades ago to slow from a higher base, while emerging markets still had room to expand from lower levels.

Musk’s SpaceX is in the final stages of starting its Starlink satellite internet service in India and has signed agreements with the top two telecom operators in the country – Reliance Jio and Airtel – according to reports. 

Tesla entered the Indian market in July last year, launching its Model Y. It has showrooms in New Delhi and Mumbai.