‘We Are Doing Very Well’: RBI Governor Slams Trump's Over 'Dead Economy' Jibe

The Indian economy is performing very well and contributing more to global growth than the United States, Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Wednesday. His comments came in response to recent remarks by former US President Donald Trump, who labeled the Indian economy as "dead."

Governor Malhotra pushed back against this characterization, highlighting India's strong growth trajectory.

He stated that India is projected to grow at 6.5 per cent in the fiscal year 2025, a significant figure when compared to the International Monetary Fund's global growth forecast of approximately three per cent, reported PTI. 

"We are contributing about 18 per cent to global GDP growth, which is more than the US, where the contribution is expected to be much lower at 11 per cent or something," Malhotra told reporters. "So, we are doing very well and we will continue to further improve."

According to PTI, the RBI Governor's remarks follow a statement from Trump, who, amid ongoing trade negotiations, referred to India as a "dead economy" while criticising its continued purchase of inexpensive oil from Russia.

"I don't care what India does with Russia. They can take their dead economies down together," Trump had reportedly said.

These comments from the former US President have raised concerns about potential tariffs and penalties for India.

However, Governor Malhotra expressed confidence that these trade tensions would not derail India's economic progress. He stated that the RBI does not anticipate a significant impact on domestic inflation from any potential tariffs.

Elaborating on this, RBI Deputy Governor Poonam Gupta noted that there would not be a direct, first-order impact on domestic inflation from these geopolitical issues, reported PTI. 

Furthermore, Governor Malhotra assured that authorities would intervene to prevent a surge in petroleum prices from affecting consumers, even if India is compelled to shift its oil purchases away from Russia due to US pressure.

He hinted at the possibility of a cut in duties to absorb any increase in oil costs.

PTI reported that Malhotra also emphasised that India's aspirational growth rate is higher than the current projection of 6.5 per cent, pointing to the country's past average annual growth of 7.8 per cent.

Following its latest monetary policy meeting, the RBI has maintained its GDP growth forecast for the current fiscal year at 6.5 per cent, citing resilient domestic activity supported by a good monsoon and government spending.