Economy of India and America
US President Donald Trump recently announced a 25% tariff on India and also described India’s economy as dead. He also said that if India and Russia want to drown with their dead economies, then they do not mind.
While this statement of Trump has intensified the reaction in political and economic circles in India, international reports and figures are proving his words to be false. IMF, Time magazine and latest data of many global institutions show that India is not only a vibrant economy, but can also overtake America in future.
Is India really weak?
If we talk about statistics, then Trump’s talk looks far away from reality. According to the International Monetary Fund (IMF), India’s economy has increased by about 12 times since 1995.
At the same time, America has grown 4 times during this period. Britain and Germany are also behind it. Japan’s condition is so bad that by 2025 his GDP will be less than 1995.
India, China and Russia, these three countries are such that they have increased the size of their economy compared to America in the last 30 years. In 1995, India’s economy was only 5% of America, but by 2025 it will be about 14%. So it is clear, India’s economy is not dead, but seems to be moving forward.
However, since 2011-12, India’s growth rate has become slightly slightly dull. Earlier, where the country was growing at a speed of 8% -9%, now this speed is stuck around 6%. China had doubled its economy in just 4 years, while it took India 11 years for this work. India is also lagging behind in terms of selling goods and services worldwide. Today India’s share in global exports is only 1.8% (goods) and 4.5% (services).
India can leave America behind
According to a report published in Time magazine in 2023, if India continued to grow at a high speed for the next 20 years, it can also leave the US economy behind by 2073. The biggest reason for this possibility is being considered as India’s population, youth work force and digital development.
According to the report, India’s largest capital is its youth. India’s working population will continue to grow for the next two decades, while the number of elderly is increasing in countries like America. Experts believe that the youth population will make India a huge consumption market, which will make economic activities faster. This is the reason that India is being counted among the most important economies of the future.
The condition of world economies
| Country | GDP (current price) in 1995 | GDP (current price) in 2025 | GDP in 2025 compared to 1995 | US GDP % in 1995 | US GDP % in 2025 |
| Argentina | 288 billion US dollars | 684 billion US dollars | 2.4 times | 3.8% | 2.2% |
| China | 738 billion US dollars | 19,232 billion US dollars | 26.1 times | 9.7% | 63% |
| Germany | 2,595 billion US dollars | US $ 4,745 billion | 1.8 times | 34% | 15.6% |
| India | 360 billion US dollars | US $ 4,187 billion | 11.6 times | 4.7% | 13.7% |
| Japan | US $ 5,546 billion | US $ 4,186 billion | 0.8 times | 72.6% | 13.7% |
| Pakistan | 99 billion US dollars | 373 billion US dollars | 3.8 times | 1.3% | 1.2% |
| Russian association | 336 billion US dollars | 2,076 billion US dollars | 6.2 times | 4.4% | 6.8% |
| UK | 1,345 billion US dollars | 3,839 billion US dollars | 2.9 times | 17.6% | 12.6% |
| America | 7,640 billion US dollars | 30,507 billion US dollars | 4 times | 100% | 100% |
Note: Pakistan’s data is available only till 2024, Source: IMF, The Indian Express
These figures testify to India’s strong economy
1- Rising growth rate
India’s growth rate is expected to reach 6.5% by 2025-26. This is more than America (1.9%) and China (4.8%). This means that India’s economy is growing rapidly, not stopping.
2- Important contribution in the development of the world
By 2030, India will become the biggest contribution in the world’s GDP growth after China. India is now becoming a direction -giving economy, not just emerging.
3- The fourth largest economy in the world
India’s current GDP is beyond $ 4.18 trillion dollars, making it the fourth largest economy in the world. This level is above some of the oldest partners in America.
4- immense possibility of development
Economists say that India’s economy can move at a speed of 6.5% to 7%, while the US capacity is limited to just 2-2.5%.
5 – Less debt burden from America
According to the IMF, India has about 83% debt of GDP, while this figure on America is more than 123%. Not only this, America has also reached the verge of default many times.
India will have to improve here
It is not right to say that everything is going well in India. The condition of the villages and farmers of the country is not good. Most of the farmers are only able to fill up. One of the big reasons for this is that manufacturing in the country, the construction sector did not increase as fast as the need was.
Government figures show that the average growth rate of manufacturing has been only 4% since 2019-20. While the speed of farming and its associated sector has been more than that. It is also worth noting that GDP is increasing, but not everyone is getting the benefit of that development. The gap between rich and poor is increasing. In 2011-12, 27% of India’s population was below the poverty line. Even today 24% of people are living in poverty. That is, the situation has not changed much.
Unemployment also remains a big challenge in India. Especially educated youth are not getting jobs. And what is found, salary and quality of work is very bad. Women’s participation is also very less. And women who work do not get proper payment. India is still lagging behind in basic sectors like health and education. There is a lot of improvement here.