Key facts
- Trump says India is 'doing very well at 7-8%'
- Reverses his earlier description of India as a 'dead economy'
- Comments come amid active US-India bilateral trade negotiations
- India has been seeking tariff relief under Trump's reciprocal tariff regime
Donald Trump reversed course sharply on India's economy, declaring the country is 'doing very well at 7-8%' — a direct contrast to his own characterisation of India as a 'dead economy' made approximately a year earlier. The comments, reported by The Times of India, signal a notably warmer presidential tone toward one of the United States' most consequential trade partners at a pivotal moment in bilateral negotiations.
The timing is significant. India and the United States have been engaged in intensive talks aimed at a bilateral trade agreement, with New Delhi seeking relief from the tariffs imposed under the Trump administration's broad reciprocal tariff regime. A public endorsement of India's economic vitality from Trump himself provides diplomatic momentum and could ease the path toward a deal.
Trump's earlier 'dead economy' remark had stung, coming at a time when India was positioning itself as the world's fastest-growing major economy. The turnaround suggests that economic data — and perhaps the progress of trade negotiations — has shifted his reading. India has consistently posted strong GDP growth, and a 7-8% growth citation aligns with recent official figures and IMF projections.
For Indian businesses and policymakers, the presidential endorsement, however informal, carries real weight. It reduces the likelihood of punitive tariff escalation and strengthens India's hand in ongoing negotiations. Commerce Minister Piyush Goyal's team, which is already engaged on multiple trade fronts including Canada, Israel and Peru, now has an additional tailwind from Washington.