New Delhi, Jul 31: With leading international agencies, including IMF, continuing to project India as the fastest-growing major economy in the world, analysts said that US President Donald Trump's description of India as a "dead economy" is "misplaced".
India Emerging as Global Hub for Investment and Tech Talent
India continues to be a hot-bed for foreign investment with several international giants looking at the country for setting up manufacturing base to Global Capability Centres (GCCs).
Also, Indian talent is most sought after particularly in the tech sector and has been a major exporter of services to countries, including the US.
Trump Labels India a 'Dead Economy' Amid Tariff Move
A day after announcing 25 per cent tariffs on India, plus a 'penalty' for its trade with Russia, Trump in a social media post on Thursday said, "I don't care what India does with Russia. They can take their dead economies down together, for all I care."
EY India Calls Trump's Remarks 'Misplaced and Baseless'
Consultancy firm EY India described Trump's comments against India as "quite misplaced" and said, in fact, the centre of gravity of the world economy is slowly shifting to the Global South for which India has placed itself in a leading role.
"On the other hand, the erstwhile developed economies are ageing fast and it is largely the contribution that Indian diaspora makes in these economies that they continue to show some positive growth," EY India Chief Policy Advisor DK Srivastava told PTI.
Incidentally, the Executive Board of the International Monetary Fund (IMF) in its assessment of the Indian economy in February 2025 had commended "the authorities' prudent macroeconomic policies and reforms, which have contributed to making India's economy resilient and once again the fastest growing major economy".
IMF had also said India's strong economic performance provides an opportunity to advance critical and challenging structural reforms to realise its ambition of becoming an advanced economy by 2047.
India's Youthful Population Fuelling Economic Dynamism
EY's Srivastava further said the Indian economy is the most lively and dynamic in the world with its population among the youngest.
As per the UN Population Statistics (2024), the median age of India's population is 28.8 years whereas that of the US is 38.5 and that of Europe is 42.8 years.
"It is these advanced economies that have become aged both in terms of median age and in terms of growth prospects. Furthermore, India is also blessed with abundant human resources that are technologically skilled and making significant contributions to the futuristic fields of space, AI, and Gen-AI," Srivastava said.
IMF, World Bank, ADB Project India’s FY26 Growth Between 6.3% and 6.5%
According to the IMF's latest World Economic Outlook Update report, India is poised to grow at 6.4 per cent in 2025 as well as 2026. This is also an upward revision from IMF's April forecast of 6.2 and 6.3 per cent, respectively.
Similar projections have been made by other international agencies like Washington-headquartered World Bank, the Asian Development Bank (ADB) and Paris-based Organisation for Economic Cooperation and Development (OECD).
While the World Bank and OECD have projected India's GDP growth at 6.3 per cent for FY26, ADB estimates it at 6.5 per cent.
(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
