Union Commerce and Industry Minister Piyush Goyal on Thursday hit back at US President Donald Trump’s description of India as a “dead economy”, saying that India is now the fastest-growing economy in the world and is poised to become the third-largest in the coming years.
“In less than a decade, India came out of ‘Fragile Five’ economies, and it has now become the fastest-growing economy of the world,” Goyal said in the Lok Sabha. “On the basis of the hard work of reforms, farmers, MSMEs, and industrialists, we have come in the top 5 economies of the world from the 11th largest economy. It is expected that we would be the third-largest economy in a few years.”
Referring to India’s economic perception globally, Goyal added: “Today, global institutions and economists see India as a bright spot in the global economy.” His remarks came hours after Trump called India a dead economy: “I don’t care what India does with Russia. They can take their dead economies down together, for all I care.”
Trump’s statement followed his announcement of a 25% tariff on all Indian imports starting August 1, along with a penalty for India’s continued trade with Russia, particularly in crude oil and defence equipment. He also called India’s tariff regime “among the highest in the world”, and its trade barriers “strenuous and obnoxious.”
Trump’s tariff move is seen as a pressure tactic aimed at forcing New Delhi into concessions, following similar agreements Washington secured with Japan, the UK, and the EU.
Addressing India’s immediate policy stance, Goyal said the government is in consultation with industry stakeholders. “Government is examining the impact of the recent events. Ministry of Commerce and Industry is holding talks with exporters, industries and all stakeholders and gathering information on their assessment of this issue,” he said.
“Government gives utmost priority to the safeguarding of welfare of farmers, labourers, entrepreneurs, industrialists, exporters, MSMEs and stakeholders of the industrial sector. We will take all necessary steps to safeguard our national interest,” he added.
Scottish historian and India expert William Dalrymple also publicly countered Trump’s remarks, stating: “In actual fact India’s economy, far from being dead, grew twice as fast as that of the US last year, and is forecast to grow at three times the US rate this year.”
According to the IMF’s latest World Economic Outlook, India is projected to grow at 6.4% in both 2025 and 2026, while the US is forecast at 1.9% and 2%, respectively. India is expected to clock 6.7% growth in 2025 on a calendar-year basis, maintaining its position as one of the world’s fastest-expanding economies.
Meanwhile, the Trump administration has also sanctioned six Indian companies for purchasing Iranian-origin petrochemical products. The sanctions form part of Washington’s broader effort to isolate Iran and now widen the scope of economic friction between the US and India.
