Donald Trump seems to have trapped himself with his statement. He took a sharp jab at India and Russia on social media, labeling their economies as 'dead.' Trump remarked that he didn't care what India did with Russia, but together these countries could further diminish their supposedly dead economies.
Trump's post was shared after the announcement of a 25% tariff on India. He stated in his post, 'I don't mind what India does in conjunction with Russia, but both can drive their 'dead economies' into further decline.'
Scottish historian and Indian history expert William Dalrymple refuted Trump's claims, stating that India is not a 'dead economy' but is actually an economy growing at double the speed of the US. He shared statistics that demonstrate how India is outpacing the US.
India's Economy to Grow Three Times Faster than the US
Dalrymple noted on Thursday that India's economy is far from 'dead.' In fact, it grew at twice the pace of the US last year and is projected to grow three times faster this year as compared to the US. The latest World Economic Outlook from the International Monetary Fund (IMF) supports Dalrymple's assertions.
Tracking India's Economic Momentum
According to the IMF, India's economy is predicted to grow at a rate of 6.4% in both 2025 and 2026, whereas the US economy is expected to see growth rates of 1.9% and 2%. During the calendar year 2025, India is predicted to achieve a growth rate of 6.7%.
Deniz Egan, head of IMF's research department, stated during a recent press conference that their growth rate remains fairly stable. Revised Indian projections show a 0.2 percentage point growth increase for 2025 and a 0.1 percentage point increase for 2026 compared to April's update.
Projected Growth in the Global Economy
Conversely, the global economy is expected to grow at a rate of 3% during 2025, whereas growth in developed economies, including the US, is anticipated to fall below 2%. China's growth rate is projected to be 4.8%.
25% Tariff Imposed on Indian Imports
On Wednesday, Trump announced a 25% tariff on all goods imported from India. He also expressed dissatisfaction over India's purchases of Russian crude oil and military equipment, indicating potential penalties. Trump remarked, 'India maintains some of the harshest and most unpleasant non-monetary trade barriers among all countries.' He labeled India's tariffs as the highest globally.
Defending the Dollar
Trump claimed that the US executed very little trade with India. According to him, India sold a lot to the US, but the US did not purchase much from India because of the high tariffs. Trump criticized India's role in BRICS, calling it an inherently anti-American group and pointing out India's membership. He declared that this is an attack on the dollar, and the US would not allow any attack on the dollar.
