Panagariya Counters Trump’s Jibe, Says India’s Economy Is Alive & Growing At 7%

New Delhi: Arvind Panagariya, Chairman of the 16th Finance Commission, has strongly rejected former US President Donald Trump’s recent comment calling India a “dead economy.” Speaking at the Business Today India@100 event, Panagariya said India is very much alive—and growing fast.

“You don’t grow at over 7 percent if the economy is dead,” Panagariya said. “In dollar terms, we are growing even faster. I don’t know what Trump means by a ‘dead economy.’ Maybe dead bodies do move,” he added, responding sharply to the remark.

Trump's Harsh Words and Tariff Move

Trump had criticized India on July 31 in a social media post, saying, “They can take their dead economies down together,” referring to India’s continued trade with Russia. Following this statement, the US imposed a 50 percent tariff on Indian imports, with a few brief exemptions.

This strong move added to tensions between the two countries, especially as they are currently working on a major bilateral trade agreement.

India Still Open for Trade: Panagariya

When asked if India is becoming too protectionist with its trade policies, Panagariya acknowledged that some protective measures exist but insisted that the country is still largely open to global trade. “There may be protectionist measures... but we are substantially open,” he said.

India Among Fastest-Growing Economies

Backing up Panagariya’s comments, Commerce and Industry Minister Piyush Goyal had earlier told Parliament that India is now the fastest-growing major economy in the world. He said India contributes nearly 16 percent to global growth and is on track to become the third-largest economy very soon.

“In just over a decade, India has transformed from being one of the Fragile 5 to among the top 5 economies globally,” Goyal said on July 31. He credited the country’s strong performance to reforms and the hard work of farmers, MSMEs (Micro, Small and Medium Enterprises), and entrepreneurs.

From Fragile to Strong

India was once considered part of the "Fragile 5" economies, but now it is seen as a global economic leader. Officials and economists alike say this transformation is due to smart policymaking and a strong domestic push.

Despite global criticism, India's leadership continues to highlight its economic resilience and global importance.