From Coming Out of Fragile Five to Fastest Growing Economy in World: How Piyush Goyal Smashed Trump’s ‘Dead Economy’ Label

Union Commerce and Industry Minister Piyush Goyal strongly rebutted US President Donald Trump's characterization of India as a "dead economy," emphasizing that India is currently the “fastest-growing economy” globally and is projected to become the third-largest economy in the coming years.

Referring to India's economic perception globally, Goyal added: "Today, global institutions and economists see India as a bright spot in the global economy." Talking about Trump's comments, he stated, "I don’t care what India does with Russia. They can take their dead economies down together, for all I care."

Goyal highlighted that India has risen from being the 11th largest to the 5th largest economy in less than a decade, exiting the 'Fragile Five' group of economies. He noted that global institutions and economists now view India as a "bright spot" in the global economy.

Speaking in the Lok Sabha, Goyal reaffirmed India's economic strength despite recent global challenges, underscoring sustained growth rates of 6–7% with govt. ambitions to push growth closer to 8%.

Also Read: ‘India A Bright Spot In Global Economy’: Piyush Goyal Says Govt Will Act In National Interest After Donald Trump’s Tariff Bomb | Republic World

“On the basis of the hard work of reforms, farmers, MSMEs, and industrialists, we have come in the top 5 economies of the world from the 11th largest economy. It is expected that we would be the third-largest economy in a few years."

Goyal also pointed to India's large foreign exchange reserves (around $690 billion) and controlled inflation, which have boosted global confidence. India has made significant progress with Free Trade Agreements (FTAs) with countries including the UAE, UK, Australia, EFTA nations, and ongoing negotiations with the US, EU, and New Zealand.

“Such agreements are expected to further solidify India’s global trade relations and attract record levels of foreign direct investment (FDI),” said Goyal.

Regarding the US-imposed tariff of 25% on Indian imports effective August 1, and penalties tied to India’s trade with Russia, Goyal stated that the government is actively consulting industry stakeholders and exporters to assess the impact.

Responding to the current situation, Goyal mentioned that the government is actively engaging with various industry representatives. He stated, "We are carefully evaluating the consequences of recent developments. The Ministry of Commerce and Industry is in ongoing discussions with exporters, businesses, and other relevant parties to collect their perspectives and assessments regarding the matter."