India’s Modi Vows Economic Vigilance Amidst Trump’s ‘Dead Economy’ Remark
India is strategically positioning itself for continued economic growth, with Prime Minister Narendra Modi emphasizing the need for vigilance in safeguarding national economic interests following critical remarks from former U.S. President Donald Trump. The debate, sparked by Trump’s assessment of India’s economy, underscores the complex geopolitical factors influencing India’s trajectory toward becoming the world’s third-largest economy.
Addressing a public rally in Varanasi on Saturday, August 2, 2025, Prime Minister Modi stated, “India is set to become the world’s third-largest economy… therefore, India must remain vigilant about its economic interests. Our farmers, our small industries, employment for our youth… their interests are paramount for us. The government is making every effort in this direction.”
The Prime Minister’s comments came in direct response to a social media post by Trump, who labeled India a “dead economy” while commenting on the nation’s relationship with Russia. Trump’s post followed the imposition of significant trade penalties, including a 25 percent tariff on nearly all imports from India. “I don’t care what India does with Russia. They can take their dead economies down together, for all I care,” Trump reportedly stated. “We have done very little business with India, their Tariffs are too high, among the highest in the World. Likewise, Russia and the USA do almost no business together. Let’s keep it that way, and tell Medvedev, the failed former President of Russia, who thinks he’s still President, to watch his words. He’s entering very dangerous territory!”
Back in India, the opposition Congress party seized on Trump’s comments, with leader Rahul Gandhi declaring, “I am glad President Trump has stated a fact. Everyone knows the Indian economy is a dead economy, everyone except the Prime Minister and Finance Minister.” However, Gandhi’s assessment was not universally shared within his own party or among its allies.
The Indian government, through Commerce Minister Piyush Goyal, has maintained a firm stance on protecting national interests while pursuing trade deals globally. Addressing Parliament, Goyal highlighted India’s economic progress, stating, “In less than a decade, India came out of ‘Fragile Five’ economies and it has now become the fastest-growing economy of the world. On the basis of the hard work of reforms, farmers, MSMEs and industrialists, we have come in the top five economies of the world from the 11th largest economy. It is expected that we will be the third largest economy in a few years. Today, global institutions and economists see India as a bright spot in the global economy.”
PM Modi further urged a focus on domestic production, advocating for a “swadeshi” approach. “Those who want the best for the country and want to see India as the third biggest economy in the world, be it any political party, should leave their differences aside and instil a resolution for ‘swadeshi’ products. We will buy only those things that are made by Indians. We need to become vocal for local,” he added, acknowledging the current “atmosphere of global instability.”
The exchange underscores the delicate balance India must maintain as it navigates a complex global landscape and strives to solidify its position as a major economic power. The government’s commitment to bolstering domestic industries and protecting its economic sovereignty will be crucial in achieving its ambitious goals.
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