The Governor of the Reserve Bank of India (RBI), Sanjay Malhotra, has said that India’s economy is doing very well and is contributing more to the global economy than the United States.
He made these statements in response to a recent comment by US President Donald Trump, who called India a “dead economy”. Malhotra firmly disagreed, saying that India is strong and growing.
“We are contributing around 18% to global growth, while the US is contributing about 11%. We’re doing well and will keep improving,” said Malhotra.
For the financial year 2025, India is expected to grow by 6.5%, much higher than the 3% global average predicted by the International Monetary Fund (IMF).
Malhotra also said that India should aim for even higher growth, as it has achieved an average growth rate of 7.8% in the past.
Trump’s Controversial Comment
Donald Trump had recently criticised India’s business with Russia, especially regarding oil imports. He reportedly said,
“India and Russia can take their dead economies down together.”
These remarks raised concerns about whether the US might place tariffs or penalties on India for buying cheaper oil from Russia.
Read more: Trump Imposes 25% Tariff on India, Adds Penalty for Buying energy and weapons from Russia
No Need to Worry About Inflation
Despite the tension, Malhotra said that India’s inflation is under control and won’t be affected by global politics or trade issues. RBI Deputy Governor Poonam Gupta also said that global tensions will not directly impact India’s prices.
Even if India has to reduce oil imports from Russia, Malhotra said that the government will step in to protect consumers if global oil prices rise.
“If needed, we’ll cut duties to make sure fuel prices don’t hurt the common people,” he said.
