Did Trump's Claim of India as a ‘Dead Economy’ Just Fall Flat?
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Synopsis
In a striking contradiction to President Trump's 'dead economy' remarks, India has propelled its GDP growth to 7.8%. This development not only challenges his assertions but also highlights India's resilient economy amidst global uncertainties. Discover how India's economic landscape is evolving and the implications of its burgeoning trade relations worldwide.
Key Takeaways
- India's GDP growth rate is 7.8%.
- The economy remains resilient amidst US tariff pressures.
- High foreign exchange reserves ensure economic stability.
- India is expanding its network of Free Trade Agreements.
- Domestic market strength insulates from global trade risks.
New Delhi, Aug 29 (NationPress) In a significant blow to US President Donald Trump, who previously labeled India a “dead economy,” the nation has recorded an impressive economic growth of 7.8 percent for the April to June quarter, solidifying its reputation as the world's fastest-growing major economy.
The robust economic results come amidst turmoil caused by US tariffs, following a 7.4 percent growth in the preceding January to March quarter (Q4 FY25).
India's strong macroeconomic indicators are evident from its high foreign exchange reserves, which can finance 11 months of imports, while inflation remains well-managed.
Union Commerce and Industry Minister Piyush Goyal announced on Friday that India’s exports this year are set to surpass last year's figures, showcasing the growing competitiveness and resilience of the Indian industry. The government is actively collaborating with partner nations worldwide to create new opportunities.
Goyal emphasized India's expanding network of Free Trade Agreements (FTAs) with developed nations, including Australia, the UAE, Switzerland, Norway, Liechtenstein, Iceland, and the UK, with ongoing negotiations with the European Union and others.
These agreements aim to further unlock global opportunities for Indian industries, including construction, steel, and related sectors.
Moreover, Goyal remarked that numerous developed nations are keen to enhance trade ties with India, noting that countries like Qatar and the United Arab Emirates (UAE) have shown strong interest in establishing FTAs with India.
His assurance comes in light of the increase in US tariffs on Indian exports by 50 percent as a punitive measure for purchasing Russian oil.
Economists suggest that the macroeconomic effects of the US tariff hike could be mitigated by India's vast domestic market.
A recent Morgan Stanley report identified India as the “best placed country in Asia,” amidst global uncertainty caused by Trump's tariff threats, due to its low goods exports to GDP ratio.
“While India faces direct tariff risks, we believe, overall, the country is less vulnerable to a global goods trade slowdown, given its low goods exports to GDP ratio in the region,” the report stated.
According to a Fitch report, India's large domestic market reduces dependency on external demand, which is expected to shield the country from the US tariff increase, with the economy projected to sustain a growth rate of 6.5 percent in FY26.
Point of View
It is vital to recognize India's remarkable economic resilience. Despite external pressures, especially from US tariffs, India continues to demonstrate robust growth. This not only underscores the nation's potential in the global market but also reflects its strategic initiatives in forging new trade partnerships. Such developments are crucial for bolstering the economy and enhancing India's position on the world stage.
NationPress
30/08/2025
Frequently Asked Questions
What is India's GDP growth for the last quarter?
India's GDP growth for the April to June quarter is an impressive 7.8%.
How is India's economy performing despite US tariffs?
India's economy is showing resilience, supported by strong domestic consumption and high foreign exchange reserves.
What are Free Trade Agreements (FTAs)?
FTAs are arrangements between countries to reduce trade barriers and increase economic cooperation.
Which countries is India negotiating FTAs with?
India is negotiating FTAs with several nations, including Australia, the UAE, and the European Union.
How does India's domestic market affect its economy?
India's large domestic market reduces reliance on external demand, providing a buffer against global economic fluctuations.
