In an exchange that has drawn global interest, US President Trump recently branded India as a ‘dead economy’ while justifying his new 25% tariff alongside a levy on Indian imports due to trade deficits, Indian-Russian relations, and what he described as exorbitant Indian tariffs on US goods. The comment sparked fierce debate across the Indian political landscape, but the most interesting was the one from Congress MP and former diplomat Shashi Tharoor, who refuted Trump’s statement, calling it ‘untethered to facts’ and ‘phrased with an intent to mislead.’
Trump’s ‘Dead Economy’ Remark Sparks Political Firestorm
In a statement on his social media platform and supported in subsequent remarks, President Trump has targeted India and Russia with the following rebuttal:
“I don’t care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India—their tariffs are too high, among the highest in the world.”
India’s sustained import tariff is bound to receive retaliation due to Indian-Russian oil and military trade in clear disregard of global sanctions.
Shashi Tharoor’s Clear Rebuttal: “Absolutely Not”
In his response to Trump’s speech, Tharoor went on to address the other Indian politicians who supported Trump, whom he termed as ‘the greater Indian politicians.’
Answering directly on the Trump estimate, Tharoor answered with:
“This is not the case, and we all know it.”
He pointed out that India’s economy is still on track to be one of the top five biggest economies, showcasing the country’s resilience along with its standing in the world.
Key Arguments in Tharoor’s Response
- India Is Not a ‘Dead Economy’: Tharoor kept on stressing that, regardless of what Trump or some of the other local critics think, India is very much an economy that is ready to take off.
- Economic Strength Amid Trade Tensions: New tariffs would take a toll on some economies; however, India’s economy is relatively healthy, especially with a robust domestic market and a growing number of international partnerships, something that Tharoor pointed out.
- India’s Right to Resist Unreasonable Demands: Speaking on trade negotiations, Tharoor pointed out that the 25% tariff is arguable to some as a trade negotiation; however, he added that no country has the right to be as unreasonable as the United States is.
- Support for Negotiators and Policy Independence: India is negotiating with many other countries. America is a very large market for us. However, if a good deal is not possible, we may have to diversify elsewhere. We’re not out of options… There is no shortage to what India has to offer, so its domestic market as well as its negotiators needs to be defended.
Contrasting Political Reactions in India
As noted in the text previously, Shashi Tharoor’s position is the complete opposite of that of Congress party member Rahul Gandhi, who noted Trump’s comment in support of India due to the so-called ‘mismanagement’ of the current government:
“Everybody knows that the Indian economy is a dead economy… I’m glad that President Trump has stated a fact.”
In any case, the ruling government’s response to Trump’s remarks was equally strong. Trump’s statements were dismissed by, among others, the minister of carded commodities, Piyush Goyal, who adumbrated that India is the world’s fastest-growing major economy and, more emphatically, that it will soon be the world’s third-largest economy. Piyush Goyal also stated that he would protect India’s important economic sectors and bargain with America on an equal basis.
Economic Realities: Far from ‘Dead’
Despite heightened U.S.-India tensions over tariffs and trade policies, India’s economic indicators suggest robust health:
Growth: India continues to post higher GDP growth rates than most other major economies.
Exports: While the U.S. is still one of India’s largest markets, India’s diversified export markets from other countries are on the rise, lessening reliance on any one country.
Domestic Market: Unlike export-oriented economies, India has a strong consumer market, which supports economic growth amidst global shocks.
Context and the Road Ahead
These comments from Trump come at a time when the global landscape is witnessing a surge in trade protectionism and realignments of global partnerships. Countries like India are looking for more leeway regarding foreign policy and economic strategies. Although India and the U.S. have some conflicts regarding tariffs and access to certain markets, both countries have to some extent maintained their relations as strategic partners, balancing insight in internal affairs and global relations.
Conclusion
Shashi Tharoor’s vigorous defense of India in response to Trump’s slur of a ‘dead economy’ highlights a more important issue: the momentum of India’s economy, the diversity of markets, and the credibility of its policies place India squarely away from the “dead economy” projection. As the political landscape is contested and the trade wars unfold, the reality and statistics continue to reinforce the argument of India’s steadfastness and growth in the economic pecking order.
