India’s “Dead Economy” Remark Backfires as Growth Hits 7.8%
India’s economy has once again proven more resilient than critics expected. Fresh numbers from the National Statistics Office revealed that in the April to June quarter, India’s GDP grew by an impressive 7.8%. That makes it the fastest growth rate in five quarters, outpacing most forecasts and keeping India firmly at the top as the world’s fastest-growing major economy. What makes this especially significant is the contrast with US President Donald Trump’s recent jibe, when he dismissed India’s economy as “dead” in one of his Truth Social posts.
The data shows otherwise. Strong farm output, steady private consumption, and a booming services sector all contributed to this surge. Agriculture grew by 3.7%, manufacturing by 7.7%, and services led the charge with a striking 9.3% jump. Private consumption, which accounts for nearly 60% of India’s GDP, expanded by 7%, supported by rural spending and demand for durable goods. Government spending also rose sharply, reversing the slowdown seen earlier in the year.
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But while these figures look upbeat, there are challenges ahead. The biggest threat right now is the fresh wave of US tariffs. Trump recently doubled duties on Indian exports, raising them to 50%, a move aimed partly at punishing India for continuing to buy discounted Russian oil. These tariffs could take a heavy toll on India’s export engine, which supports millions of jobs. Analysts warn that the new duties might shave up to 0.8 percentage points off growth over the next year. Exporters even rushed to ship goods to the US before the deadline, creating what economists call a “front-loading effect” that boosted this quarter’s numbers but won’t last.
Even so, experts remain cautiously optimistic. While the tariffs will hurt, India’s domestic economy is displaying surprising strength. Inflation has stayed modest, government reforms are moving forward, and consumer demand is still resilient. Some economists say that India is still on track to grow around 7% this year, even after factoring in tariff headwinds.
Prime Minister Narendra Modi’s government is positioning India as a global manufacturing hub at a time when companies worldwide are rethinking supply chain dependence on China. With reforms such as GST rationalisation and targeted support for industries hit by tariffs, the government hopes to keep the growth momentum going. Meanwhile, the Reserve Bank of India projects overall growth for the financial year at around 6.5% and is expected to hold interest rates steady.
So, while Trump’s “dead economy” remark was meant as a swipe, the data paints a very different picture. India is not just alive but thriving, even if the road ahead comes with new trade battles and tariff headwinds. In the global growth race, India remains one of the brightest spots—outpacing China, outpacing expectations, and showing that it’s far from finished.
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