Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday retaliated on Donald Trump’s statement with Dead Economy regarding India. Malhotra said that the Indian economy is doing very well and is contributing more to global development than in the US. According to PTI news, his statement came a few days after US President Donald Trump called India a dead economy.
India’s contribution to global development is about 18%, America is less
According to the news, Sanjay Malhotra said that while the global economy is expected to grow at a rate of 3% in 2025, India’s growth rate is expected to be 6.5%. He said that we are contributing about 18% to global development, which is much more than the US (about 11%). India is doing very well and will do even better. He also said that India’s aspiring growth rate should be more than 6.5% and the country has increased an average of 7.8% in the last years.
Reaction to Trump’s statement
Trump recently targeted India over trade policy and called it a “dead economy”. He criticized India over the purchase of cheap oil from Russia and said that I do not mind what India does with Russia. Both of them can drown their dead economies together. This statement is believed to be a sign of tension in Indo-US relations, especially concerns about potential American restrictions or tariffs regarding oil purchases from Russia.
No effect on inflation
RBI Governor Malhotra also clarified that American tariffs or geopolitical stresses would have no effect on domestic inflation. Deputy Governor Poonam Gupta also said that no impact of these developments will be seen on inflation. Even if India had to distance from Russian oil under the pressure of America, domestic inflation will not be affected. Malhotra indicated that if crude oil prices rise, the government can take steps like a cut in fee to not allow the burden on the general public.
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