India's Economic Surge Surpasses US: RBI Governor Counters Trump's Critique

In a strong rebuttal to US President Donald Trump's assertion that India is a 'dead economy,' Reserve Bank Governor Sanjay Malhotra announced that the Indian economy is performing excellently, contributing more to global economic growth than the United States. Malhotra highlighted an expected growth of 6.5%, surpassing the IMF's prediction for global growth in 2025.

Malhotra stated that India contributes about 18% to global growth, significantly more than the US's expected 11%. He emphasized the country's potential for an aspirational growth rate higher than 6.5%, reflecting on India's historical annual growth average of 7.8%. Trump's critique came amid trade policy negotiations and India's continued oil purchases from Russia.

Addressing inflation concerns, Malhotra assured that there is no expected impact from tariff-related aspects despite US criticisms. Deputy Governor Poonam Gupta reinforced that geopolitical tensions will not directly affect domestic inflation. Malhotra suggested potential duty cuts to keep petroleum prices in check should the need arise.

(With inputs from agencies.)