Last July, US President Donald Trump provoked India by describing it as a “dead economy.” He had remarked that he did not care what India and Russia were doing together and could “push their dead economies even lower.” Trump’s comments came in response to India’s continued purchase of Russian crude oil despite strong US pressure to cut such imports.However, the tables have now turned, as Trump himself faces mounting domestic challenges. The United States has entered its third consecutive month of turmoil, with a government shutdown that has stretched into its eighth day. The shutdown, which began on October 1, has paralysed government operations after the failure to pass a bill allocating funds for federal expenditure. Trump now finds himself waiting for opposition Democrats to pass the spending bill necessary to reopen government offices and resume normal operations.
The shutdown has led to the closure of all federal offices except essential services such as healthcare, border patrol, and air traffic control. Even NASA’s operations have been disrupted. Hundreds of thousands of federal employees have been placed on unpaid leave, while Trump has warned that more layoffs could follow if the deadlock continues. The standoff reflects the political impasse between Trump’s administration and the Democrat-controlled Congress.The bill that failed in Congress was meant to provide operating funds until November. More than ten such spending bills are expected to be passed by January 2026 to cover various departments and programmes. However, Democrats insisted that the bill should also include provisions to continue certain health subsidy schemes. Trump opposed this demand, leading to a stalemate and the subsequent government shutdown.
Despite the crisis, Trump has tried to shift the blame onto the Democrats, accusing them of “shutting down a thriving US economy.” He has claimed that the American economy and stock markets are performing well and that his administration is open to discussions with the opposition to end the impasse.
India’s strong growth and global confidence defy Trump’s “dead economy” remark
Ironically, while Trump labelled India’s economy as “dead,” recent figures tell a different story. India remains the world’s fastest-growing major economy, recording a GDP growth of 7.8% in the April–June quarter. In comparison, China’s growth stood at 5.2%, the US at 3.3%, Japan at 0.4%, Germany at negative 0.3%, the UK at 0.3%, and Indonesia at 5.12%. India’s growth rate was its best performance in the last five quarters, further contradicting Trump’s earlier remarks. Even American rating agency Standard & Poor’s (S&P) has upgraded India’s sovereign credit rating from BBB negative to BBB positive. The improved rating indicates confidence in India’s economic health and its ability to meet debt obligations on time. The upgrade has been seen as a vote of confidence in India’s fiscal management and growth outlook.
Trump’s criticism of India over Russian oil imports and his imposition of a 50% tariff on Indian goods are widely interpreted as expressions of frustration following failed trade negotiations. Washington had demanded that India open its markets to US agricultural and dairy products by reducing tariffs. However, New Delhi has resisted such pressure, considering the lives of Indian farmers. India has also declined to endorse Trump’s controversial claim that he single-handedly resolved the India-Pakistan conflict, further straining trade ties between the two countries. Analysts suggest that Trump’s sharp comments about India’s economy may have stemmed from these diplomatic and trade disagreements rather than from genuine economic concerns. As the US grapples with its deepening fiscal crisis, the contrast between India’s rising growth and Washington’s political gridlock has become increasingly stark, highlighting how Trump’s rhetoric about a “dead economy” has backfired amid his own government’s paralysis.
