In an unusual convergence of rhetoric, US President Donald Trump and Congress leader Rahul Gandhi have painted India as a “dead economy”, a claim that not only contradicts ground realities but also dismisses a decade of consistent economic growth and global recognition.
On his social media platform, Trump belittled the scale of Indo-US trade and labelled India’s economy among the “dead.” Instead of rebutting this as an affront to India’s achievements, Leader of Opposition Rahul Gandhi endorsed it. “Yes, he is right… Everybody knows that the Indian economy is a dead economy… BJP has finished the economy to help Adani,” Gandhi declared, echoing Trump’s controversial claim.
However, data from across economic sectors paints a dramatically different picture, one of expansion, structural reform, investment boom, and rising global stature. Here’s a reality check.
India: The 4th Largest Economy in the World
Contrary to the “dead economy” label, India surpassed Japan in 2025 to become the world’s fourth-largest economy with a GDP value of $4.19 trillion, trailing only the United States ($30.5 trillion), China ($19.23 trillion), and Germany ($4.74 trillion).
In 2014–15, India’s GDP stood at ₹106.57 lakh crore. By 2024–25, it has more than tripled to ₹331.03 lakh crore. India is projected to become the third-largest global economy by 2030, with a value of $7.3 trillion.
Far from being on life support, India is leading global growth charts, with real GDP growing at 6.5% and projected to maintain growth between 6.3% to 6.8% in 2025–26.
#WATCH | Delhi: On the US President Trump's dead economy remark, Lok Sabha LoP and Congress MP Rahul Gandhi says, "Yes, he is right, Everybody knows this except the Prime Minsiter and the Finance Minsiter. Everybody knows that the Indian economy is a dead economy. I am glad that… pic.twitter.com/n7UWXrgggW
— ANI (@ANI) July 31, 2025
Foreign Direct Investment: India Becomes a Magnet
In just over a decade, India has emerged as one of the most attractive FDI destinations globally.
1. FDI inflows increased 20 times over the past two decades.
2. India received USD 667.74 billion in FDI between 2014 and 2024 — 67% of all FDI received in the past 24 years.
3.Cumulative FDI touched USD 1 trillion by September 2024.
4. In the first half of FY 2024–25 alone, India recorded a 26% increase, receiving over USD 42 billion.
5. A record USD 84.84 billion was received in FY 2021–22.
More than 90% of these equity inflows came through the automatic route, reflecting growing investor confidence and India’s improving ease of doing business.
Exports: Rising in Goods and Services
India’s export story has been a pillar of its economic strength:
1. Total exports grew 76% in the last decade, rising from $468 billion to $825 billion in 2024–25.
2. Merchandise exports increased from $310 billion in 2013–14 to $437.42 billion in 2024–25, a 39% rise.
3. In FY 2024–25 alone, merchandise exports held steady at $437.42 billion, indicating resilience.
4. Services exports more than doubled, soaring from $158 billion to $387 billion over the decade.
Engineering goods, petroleum products, electronics, and pharmaceuticals have led this surge, reaffirming India’s status as a diversified export powerhouse.
Infrastructure: Expanding Reach, Building Capacity
India’s physical and digital infrastructure has witnessed a transformative expansion over the last ten years:
1. National highways increased from 91,287 km in 2014 to 1,46,204 km as of March 2025.
2. 160 airports are now operational, including 145 traditional airports, 2 water aerodromes, and 13 heliports.
3. The digital economy has surged, with India’s Unified Payments Interface is also now the world’s number one real-time payment system, according to 2025 IMF report. It has surpassed Visa to take the lead in processing daily transactions. UPI handles more than 640 million transactions every day, compared to Visa’s 639 million. These are not signs of stagnation but indicators of a fast-modernising economy with nationwide connectivity.
Financial Sector: Stabilised and Strengthened
While Rahul Gandhi claims the economy has collapsed, macroeconomic indicators point to prudent fiscal and monetary management:
1. Gross NPAs of Scheduled Commercial Banks fell to a 12-year low of 2.6% by December 2024.
2.Inflation, which averaged 8.2% between 2004–2014, was brought down to around 5% (2015–2025).
3. Retail inflation stood at 4.6% in 2024–25, the lowest since 2018–19.
These reflect consistent macroeconomic stability and policy efficacy, hardly characteristic of a failing economy.
Entrepreneurship and Manufacturing: Incentivising Growth
India’s push toward self-reliance through the Aatmanirbhar Bharat mission has led to a manufacturing resurgence:
1. The 15% corporate tax rate for new manufacturing units has been extended till 2024, attracting global manufacturers.
2. Production Linked Incentive (PLI) schemes have spurred growth in electronics, pharma, and renewable energy sectors.
3. Indian corporates raised a record ₹1.62 lakh crore through IPOs in 2024–25.
This surge in domestic and international capital mobilisation signals a robust entrepreneurial ecosystem.
Structural Transformation Under Visionary Governance
India’s economic rise is the result of strategic governance and structural reforms under Prime Minister Narendra Modi.
From GST and Insolvency and Bankruptcy Code to rural electrification and DBT (Direct Benefit Transfer), policy measures have not only improved efficiency but also empowered citizens.
The transformation is best summed up by economist Jagdish Bhagwati’s sharp observation: “In the old days, the World Bank used to tell India what to do, but now, India tells the World Bank what to do.” This reflects India’s transition from dependency to leadership in global economic forums.
Global Standing and Future Projections
India’s economic credentials are not just domestic projections; they are being validated globally. The country has become a key voice in trade negotiations, a hub in global value chains, and a leading destination for high-tech investment.
With GDP expected to rise from $4.19 trillion to $7.3 trillion by 2030, India is well on its way to becoming the third-largest economy in the world.
Trump and Rahul Gandhi Out of Touch With Reality
The repeated use of the phrase “dead economy” by both Trump and Rahul Gandhi flies in the face of hard economic facts. It discounts a decade of solid performance, structural change, and global recognition of India’s rise.
India’s GDP has more than tripled, FDI has skyrocketed, exports have surged, inflation is under control, infrastructure has expanded dramatically, and financial stability has improved, all signs of a dynamic, thriving economy.
Political attacks that ignore these facts do not weaken India’s standing. They only expose the disconnect of those making such remarks from economic reality. The data tells a different story, and that story is one of growth, resilience, and global ascent.
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