“Dead Economy”? How India is Defying the Doubters—and Strengthening Ties
Recently, former U.S. President Donald Trump sparked controversy by dubbing India a “dead economy”—a comment that drew sharp reactions from political and business circles in both countries. He criticized India’s tariffs, questioned its trade policies, and hinted at strained economic relations. However, India’s response has been nothing short of assertive, backed by strong economic data and visible progress.
The Indian Counterpunch
- India’s Growth Outpaces the Rest
RBI Governor Sanjay Malhotra strongly countered Trump’s statement, noting that India contributes 18% to global GDP growth—surpassing the United States at 11%. He emphasized that India is currently growing at 6.5%, well above the global average, with ambitions to climb even higher. - India – The Fastest-Growing Major Economy
Finance Minister Piyush Goyal highlighted IMF projections showing India’s GDP growth at 6.4% compared to the U.S. at 2.0%, asserting that the Indian economy is thriving. Economist Arvind Panagariya humorously added, “Maybe dead bodies do move—but India is growing at 7%.” - Prime Minister Modi’s Veiled Response
Speaking in Bengaluru, Prime Minister Narendra Modi reminded the audience that India has moved from the world’s 10th largest economy to the top five, and is on track to reach the top three. He cited a range of achievements: airports have increased from 74 to over 160, national waterways have grown from 3 to 30, AIIMS institutions have expanded from 7 to 22, medical colleges have risen from 387 to 704, and electronics exports have surged from $6 billion to $38 billion. India’s total exports have also nearly doubled from $468 billion to $824 billion. - Domestic Unity in Response
Nationalist sentiment has grown stronger, with calls to boycott certain U.S. brands. Union Minister Nitin Gadkari criticized Trump’s “bullying” tone and stressed the importance of boosting exports and reducing import dependence. - A Broader Diplomatic Fallout
The remarks have deepened tensions, with tariffs climbing to 50% and bilateral ties reaching one of their lowest points in years. Long-standing strategic and economic cooperation between the two nations appears under strain.
Why This Matters
- India’s global status is rising, and its leaders are determined not to be undermined by dismissive remarks.
- Economic resilience is being reinforced through real numbers and structural reforms.
- The nation is shaping its own narrative, refusing to be defined by outside criticism.