The Governor of the Reserve Bank of India, Sanjay Malhotra, has refuted recent comments made by the former U.S. President, Donald Trump, in Ohio sometime this week, in which he termed India as a ‘dead economy.’ The Governor said such comments are unacceptable, appreciating India's vigour in performance and asserting that basically, the country is growing faster than the U.S. in a multitude of fronts.
In a press note released in Mumbai after the Monetary Policy Review by the RBI, Malhotra said, "India's economy is far from dead; actually, it is alive, resilient, and dynamic. Our growth trend is very steady and has consistently outpaced many developed economies, including the United States, in the past few years."
Trump’s remarks sparked comment and outrage on Indian social media, with many questioning whether the statement was even true and why it was being made. In his remarks, Trump had lumped India into a group with several other countries whom he called the "job-stealing nations," stating that the economy of India was dead and was not buying anything from us.
With all data at his disposal, Malhotra promptly refuted the statement, "India recorded a GDP growth of 7.8% in the last fiscal year; the U.S., in comparison, grew at around 2.5%. Our exports are booming. Investments from outside and the digital innovation ecosystem are also strong. The Indian middle class is growing, consumption is rising, and inflation is being kept in check. These are not features of a dead economy."
He also noted in his address that India received renewed attention in macroeconomic discussions internationally, citing the recent strategic alignments with the UAE, France, and Japan in digital currency, energy transition, and fintech cooperation.
"India is a key factor in shaping future global finance, supply chains, and digital infrastructure," said Malhotra. "We may differ in political views, but facts must be respected."
Several senior economists and business leaders echoed Malhotra's sentiments, terming the US President's comments outdated and uninformed. Analysts believe the statement may have been political, with India as a bigger trade and geopolitical partner to the US under the present-day administration.
With India preparing for another budget cycle and attracting record levels of FDI, RBI's chief's response underlines the country's increasing confidence in its macroeconomic fundamentals and its stride on the global map.