Reserve Bank of India (RBI) Governor Sanjay Malhotra robustly defended India’s economic vitality on Wednesday, directly addressing US President Donald Trump’s recent comment labeling India a “dead economy.” Speaking to reporters at the RBI headquarters in Mumbai, Malhotra underscored that India is “doing very well,” with a projected growth rate of 6.5% for the fiscal year 2025, significantly outpacing the International Monetary Fund’s (IMF) global growth estimate of 3%. He highlighted India’s substantial contribution of 18% to global economic growth, notably higher than the United States’ estimated 11%, reinforcing India’s pivotal role on the world stage.

Malhotra’s remarks were in response to Trump’s criticism during ongoing trade policy negotiations, where the US President expressed frustration over India’s continued purchase of cost-effective Russian oil. Trump’s statement, which suggested that India and Russia could “take their dead economies down together,” raised concerns about potential tariffs or penalties from the Trump administration. However, Malhotra dismissed these concerns, emphasizing India’s strong economic fundamentals. He pointed to the country’s historical average growth rate of 7.8% annually over recent years, expressing optimism about achieving even higher growth in the future.

Deputy Governor Poonam Gupta supported Malhotra’s stance, stating that geopolitical tensions, including potential shifts away from Russian oil, would not lead to significant domestic inflation. The RBI remains confident that strategic measures, such as adjusting duties on petroleum products, will shield Indian consumers from price volatility. Malhotra assured that authorities are prepared to intervene to ensure that rising global oil prices do not burden the common man, maintaining economic stability.

The central bank’s proactive approach aims to balance external pressures with domestic priorities, reinforcing India’s resilience amid global economic uncertainties.

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