 "Irony: Economy Trump calls ‘dead’ grows at 7.8%, one he calls ‘best’ grows 3.3%")
In a twist of irony, India once branded a ‘dead economy’ by President Donald Trump has emerged with a stellar 7.8% growth in the April–June quarter, outstripping the US which managed just 3.3% despite Trump’s boasts of it being the ‘best’.
Fresh government data released this week showed that Asia’s third-largest economy defied fears of a slowdown, powered by resilient domestic demand, strong services and a rebound in manufacturing.
The expansion beat forecasts and highlighted why the IMF and World Bank continue to place India among the fastest-growing major economies, projecting growth of 6.3–6.4% in the coming years.
The contrast with the US is stark. While the American economy cooled from its earlier highs amid weaker consumer spending and trade headwinds, India has continued to demonstrate momentum despite punitive US tariffs on its exports, which were recently doubled on goods like textiles, chemicals and leather.
Friday’s reading reaffirms India’s position as the fastest-growing major economy and will come as welcome news for Prime Minister Narendra Modi, who is trying to deal with US President Donald Trump’s harsh tariff blitz.
Trump has slapped 50-percent tariffs on most Indian products among the highest duty rates in the world as punishment for New Delhi’s purchases of Russian oil which Washington claims helps finance Ukraine war.
Political undertones
Trump’s remarks labelling India’s economy as “dead” drew sharp responses, including from Australia which hailed India as a land of “fantastic opportunities.” Analysts point out that far from collapsing, India is on track to potentially become the world’s second-largest economy by 2038 in purchasing power parity (PPP) terms with a projected GDP of $34 trillion.
For New Delhi, the numbers are also a validation of its domestic policy push from infrastructure investment to production-linked incentives even as global trade tensions pose risks. The Reserve Bank of India has flagged US protectionism as a key downside factor, though it emphasised that domestic demand remains strong enough to cushion external shocks.
Impact Shorts
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The juxtaposition between Trump’s rhetoric and economic reality has fuelled debate ahead of the US elections. While he criticises India’s rise, the country’s growth trajectory is increasingly being recognised as central to global economic stability.
The irony is that the “dead” economy continues to deliver some of the world’s fastest growth, while the one Trump hails as the “best” shows signs of cooling.
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