Finance Minister Nirmala Sitharaman, while addressing the Youth Dialogue on the Union Budget 2026–27, underscored India’s growing role in driving the global economy and invoked remarks by tech entrepreneur Elon Musk to illustrate the scale of this shift. At the same time, she reaffirmed the government’s commitment to fiscal consolidation alongside sustained capital expenditure as key pillars of economic policy.
Speaking at the event, Sitharaman referred to Musk’s recent comments based on data from the International Monetary Fund. She noted that, according to IMF figures highlighted by Musk, China contributes about 26 per cent to global GDP growth, while India accounts for roughly 17 per cent. Together, the two Asian economies are responsible for nearly 43 per cent of worldwide growth, a statistic she said powerfully reflects India’s expanding economic footprint.
Addressing the audience, the Finance Minister remarked that many young people who are active on social media may have come across Musk’s widely circulated post reacting to the IMF data. She recalled that Musk had expressed surprise at the figures, questioning whether they were accurate, and used that moment to draw attention to what the numbers signify for India’s standing in the global economy.
Sitharaman went on to explain that the graphic shared online clearly showed the comparative contributions of major economies. China’s share stood at 26 per cent, India’s at 17 per cent, and together they accounted for over two-fifths of global GDP growth. She asked the students what message such data conveyed, encouraging them to reflect on India’s rising influence in shaping global economic trends.
Turning to domestic political discourse, the Finance Minister said that India’s Opposition should also recognise the strength the country has built over recent years. She stated that India now stands just behind China in terms of contribution to global growth, and while the gap between the two economies remains significant, it is one the country is determined to narrow in the coming years.
Musk, earlier in the week, had shared a chart based on the IMF’s January 2026 projections, listing the top ten contributors to global real GDP growth in 2026. Alongside the chart, he wrote that the “balance of power is changing,” pointing to India’s position as one of the leading engines of global growth, ahead of the United States. The data suggested that China and India together would account for about 43.6 per cent of global growth, with India contributing 17 per cent and the US around 9.9 per cent.
These remarks came at a time of heightened global economic uncertainty and escalating trade tensions, including tariffs imposed by Donald Trump on several countries, among them China and India. The IMF projections and Musk’s observations have been widely interpreted as evidence of an eastward shift in economic power.
Sitharaman made her comments while interacting with university students at Parliament of India, shortly after they had observed the Budget presentation from the Lok Sabha gallery. Around 30 students participated in the interaction in New Delhi, which was aimed at engaging young people with the government’s economic vision.
Earlier, she had presented her ninth consecutive Union Budget in the Lok Sabha, laying out proposals focused on infrastructure development, sustained public investment, and initiatives such as sustainable tourism. She described the Budget as part of a youth-centric and duty-driven roadmap designed to support long-term growth while maintaining fiscal discipline.
