Trump’s ‘Dead Economy’ Remark Backfires as India Posts 7.8% GDP Growth
Donald Trump’s swipe at India’s economy hasn’t aged well. The US President branded India a “dead economy.” Yet, the numbers tell a different story.
India’s economy has roared ahead with a 7.8% GDP growth rate in the April–June quarter, cementing its crown as the world’s fastest-growing major economy.
The timing is striking. America itself is caught up in tariff wars, while India quietly builds momentum. Growth in the previous quarter stood at 7.4%. Now, it has only accelerated.
Behind the figures lies solid groundwork. India holds foreign exchange reserves hefty enough to cover 11 months of imports. Inflation? Tamed.
The U.S. economy is near collapse and the dollar is in trouble.
While Trump calls India Dead economy. pic.twitter.com/UJMTbUmz4b
— Frontalforce (@FrontalForce) August 29, 2025
Union Commerce and Industry Minister Piyush Goyal was quick to underline the shift: “India’s exports this year will be higher than last year, reflecting the growing competitiveness and resilience of the Indian industry.”
He stressed that the government is not standing still. New Free Trade Agreements (FTAs) are being pushed forward with nations such as Australia, the UK, Switzerland, Norway, Iceland, and the UAE. Talks are ongoing with the European Union as well.
The upbeat data arrives against a complicated backdrop. Washington recently slapped 50% tariffs on Indian exports as a punitive measure for its continued purchase of Russian oil.
But Goyal was defiant, noting several developed economies are eager to deepen trade relations with New Delhi. Qatar and the UAE, in particular, have signalled strong interest in striking FTAs.
Interestingly, this comes soon after a US court ruling on Trump’s tariffs. The decision has added another layer of scrutiny to Washington’s trade stance and highlighted the mounting legal challenges tied to Trump’s economic legacy.
Economists argue that India’s vast domestic market shields it from external shocks. Local demand acts as a cushion when foreign policy takes a hostile turn.
Investment houses are also backing India. A Morgan Stanley report recently labelled India the “best placed country in Asia” to withstand global trade volatility.
“While India is exposed to direct tariff risks, we believe on balance India is less exposed to global goods trade slowdown,” the report added.
Fitch Ratings echoed the sentiment. Its projections show India maintaining around 6.5% growth in FY26, largely thanks to its reliance on domestic consumption rather than exports.
For critics, Trump’s “dead economy” line was more rhetoric than reality. India’s surge in growth sends a clear message: resilience is the new headline.
While global powers wrestle with protectionist measures, India is playing the long game, expanding trade, building resilience, and pushing growth.
The embarrassment for Trump is clear. His words suggest decline. India’s figures, however, point to an economy that is very much alive.
