If you consider India’s economy as “soaring” and now ranked fourth in the world, then U.S. President Donald Trump’s latest statement will leave you stunned.
Just hours after imposing a 25% tariff, Trump labeled India and Russia as “dead economies.” He posted on social media, “I don’t care what India does with Russia. They can take their dead economies together and sink.” This statement not only shocked observers but also directly challenged India’s rapidly growing economy and its long-standing relations with Russia. What lies behind Trump’s remarks, and what do the real economic numbers say? Here’s the full story shaking global politics and trade.
Trump’s ‘Tariff Bomb’ and Verbal Attack
After imposing a 25% tariff against India, President Donald Trump launched another strike, stating on his social platform:“I don’t care what India does with Russia. They can take their dead economies together and sink, I don’t care.”
He added, “We have very little trade with India because their tariffs are the highest in the world. Similarly, there is almost no trade between Russia and the USA.”
These words were not mere rhetoric-they reflect America’s new trade policy and the growing pressure on India-Russia relations. Trump’s statement attempts to undermine the economic strength of both nations, but the facts tell a very different story.
India’s Economic Reality: Far from ‘Dead’
Despite Trump’s harsh words, India’s economic data paints a picture of remarkable growth. As of 2025, India has become the 4th largest economy in the world with a nominal GDP of $4.19 trillion, overtaking Japan and standing behind Germany ($4.74T), China ($19.23T), and the USA ($30.50T).
By 2030, India is projected to reach $7.3 trillion GDP, becoming the 3rd largest global economy.
According to Government of India data (June 2025):
Nominal GDP Tripled: From 2014-15 to 2024-25, India’s nominal GDP rose to ₹331.03 lakh crore.
Strong Growth Rate: Real GDP grew 6.5%, while nominal GDP grew 9.9% in 2024-25.
Consumption Boom: Private Final Consumption Expenditure (PFCE) rose 7.3%, contributing 61.8% to GDP-the highest since 2002-03.
Record FDI Inflows: By December 2024, cumulative FDI inflows reached ₹89.85 trillion ($1.05T)-almost 20 times higher than in 2001.
India’s Export Surge: Doubled in a Decade
Trump may have downplayed India’s trade, but exports tell a different story. In just 10 years, India’s exports almost doubled:
2013-14: $468 billion
2024-25: $825 billion (+76%)
Breakdown:
Merchandise Exports: From $310B to $437.42B
Services Exports: From $158B to $387B (more than doubled)
Clearly, India is not a “dead economy” but one of the fastest-growing and strongest economies globally.
Russia: A Strong Partner, Not ‘Dead’
Trump also tagged Russia as a “dead economy,” but reality differs:
IMF Data 2025: Russia’s economy is $2.076 trillion, the 11th largest globally.
GDP Growth: 5.9% in 2023
Exports: $425.1B, with mineral products ($260.1B) leading
Top Trade Partners: China, India, Turkey-showing India-Russia economic depth
India-Russia Trade at Historic Highs
While U.S.-Russia trade remains minimal, India-Russia trade is thriving:
Bilateral Trade FY 2025: $68.7 billion (up 7x from pre-pandemic $10.1B)
Indian Investment in Russia: $16B (oil, gas, pharma, IT)
Russian Investment in India: $20B (energy, steel, petrochemical, railways)
Targets: $100B trade and $50B investment by 2030
Oil Trade: India now buys 35-40% of its crude oil from Russia. Petroleum Minister Hardeep Singh Puri stated: “India will buy oil from wherever it needs to, in the interest of its consumers.”
Impact of Trump’s Tariffs: A New Challenge
Trump’s tariffs and statements may not derail India’s economic momentum but pose short-term challenges.
Brokerage Estimates (Nomura, Barclays): India’s GDP growth in 2025-26 may dip 20-30 basis points.
Tariff Hike: Average U.S. tariff on Indian goods jumped from 2.7% to 20.6%, with 50% on steel & aluminum and 25% on auto parts.
Sectors at Risk: Pharmaceuticals, smartphones, machinery, jewelry, textiles, and auto components.
Trump’s remarks and tariffs undoubtedly pose a policy and trade challenge for India, but dismissing India as a “dead economy” is a grave misjudgment. Backed by robust economic growth, record exports, strong FDI, and deepening ties with Russia, India appears well-positioned to navigate this trade war.