Goyal retorts ‘India is fastest-growing major economy’
US President Donald Trump has called India a “dead economy” sparking a political firestorm in India, hours after he announced a 25 per cent tariffs on import of Indian goods along with an unspecified “penalty” for buying “vast majority” of Russian military equipment and crude oil.
As India analysed the possible impact of the 25 per cent tariffs announced in Washington yesterday, Trump targeted both India and Russia, saying they can take their “dead economies down together”, in a fresh attack for their close trade ties.
In the backdrop of Trump’s “dead economy” barb at India, Commerce Minister Piyush Goyal told Parliament on Thursday that India is the world’s fastest-growing major economy and widely expected to be the “third largest economy” in a few years. Goyal also said India will take all necessary steps to safeguard and promote national interest and that the implications of the US tariffs are being examined.
But the remark by Trump on India was echoed by Congress leader Rahul Gandhi who said the President has stated a “fact”, prompting a strong condemnation from the BJP.
The US president’s diatribe came after he announced 25 per cent tariffs against India from August 1, along with an unspecified “penalty” to punish New Delhi for continuing to procure crude oil from Russia notwithstanding the Western sanctions. Russia remained India’s top oil supplier in the last few months.
“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,” Trump shared on Truth Social.
In a suo motu statement on Trump tariffs in both houses of Parliament, Goyal said international institutions and economists see India as the bright spot in the global economy.
India is contributing to almost 16 per cent of global growth, he said, adding that it is also widely expected that “we will become the third largest” economy in a few years.
“In just over a decade, India has rapidly transformed from being one of the Fragile 5 to the fastest-growing major economy in the world. We have risen from the 11th largest economy to one of the top 5 economies, driven by our reforms, the hard work of our farmers, MSMEs and entrepreneurs,” Goyal said.
Goyal further said that in the last decade, the government has taken transformative measures to promote India as the manufacturing hub of the world.
India’s young, skilled and talented workforce is driving innovation and competitiveness of the Indian industry, he said.
The tariff action is being seen as a pressure tactic to get New Delhi to agree to demands made by the US, which has, in recent days, got favourable trade deals with major partners like Japan, the UK and the European Union.
While announcing the tariff, Trump described India’s trade policies as “most strenuous and obnoxious”.