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.

https://www.rt.com/india/631866-balance-of-power-shifting-musk/

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India announces record military spending

New Delhi has allocated 15% more to defense in the federal budget following a brief war with Pakistan

India has earmarked $85 billion for military spending in its budget for the 2026-27 fiscal year, marking a record 15% increase, Finance Minister Nirmala Sitharaman has told parliament in her annual budget speech.

The sharp rise follows a brief military conflict with neighboring Pakistan in May 2025. Capital expenditure for the armed forces has been set at $23 billion, aimed at funding major procurement programs.

“The Union Budget 2026-27 will help in further strengthening India’s defence capabilities,” Defense Minister Rajnath Singh later said in a post on X.

The key focus of the budget following Operation Sindoor, a limited military operation launched in response to cross-border hostilities with Pakistan earlier this year, is the modernization of the armed forces, Singh said.

New Delhi and Islamabad traded fire from May 7 to 10, following a militant attack on April 22 in Jammu and Kashmir that killed 26 people.

The clashes involved the extensive use of missile systems, underscoring the growing role of long-range strike capabilities.

The increased expenditure is expected to go towards Indian purchases of fighter aircraft, naval ships, and modern warfare equipment, including drones, The Week reported.

India is looking to create a rocket-missile force with weapons that can hit targets at different ranges, the chief of the army staff said, explaining that such a force is essential to boosting combat effectiveness.

New Delhi approved a string of defense purchases in 2025, allocating $8.8 billion in December.

This followed a nod for purchases worth about $7.6 billion in August, which included BrahMos missiles and armed drones, along with upgrades to other existing platforms.

India, one of the world’s top defense importers, has historically relied on Moscow for equipment and technology. It views Russian missile technology as central to maintaining an airpower balance with its neighbors.

Discussions between Moscow and New Delhi on manufacturing Sukhoi Su-57 aircraft in India are reportedly at an advanced stage. Moscow is an active partner in New Delhi’s plans to make weapons locally, with some Russian defense equipment being already manufactured under licensing agreements in India.

https://www.rt.com/india/631855-india-announces-record-military-spending/

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