India fastest growing major economy, Trump's perception of 'dead economy' misplaced: Analysts
India continues to be a hot-bed for foreign investment with several international giants looking at the country for setting up manufacturing base to
Global Capability Centres
(GCCs).
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A day after announcing 25 per cent tariffs on India, plus a 'penalty' for its trade with Russia, Trump in a social media post on Thursday said, "I don't care what India does with Russia. They can take their dead economies down together, for all I care."
Consultancy firm
EY India
described Trump's comments against India as "quite misplaced" and said, in fact, the centre of gravity of the world economy is slowly shifting to the Global South for which India has placed itself in a leading role.
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"On the other hand, the erstwhile developed economies are ageing fast and it is largely the contribution that Indian diaspora makes in these economies that they continue to show some positive growth," EY India Chief Policy Advisor DK Srivastava told PTI.
Incidentally, the Executive Board of the International Monetary Fund (IMF) in its assessment of the Indian economy in February 2025 had commended "the authorities' prudent macroeconomic policies and reforms, which have contributed to making India's economy resilient and once again the fastest growing major economy".
IMF had also said India's strong economic performance provides an opportunity to advance critical and challenging structural reforms to realise its ambition of becoming an advanced economy by 2047.
EY's Srivastava further said the Indian economy is the most lively and dynamic in the world with its population among the youngest.
As per the UN Population Statistics (2024), the median age of India's population is 28.8 years whereas that of the US is 38.5 and that of Europe is 42.8 years.
"It is these advanced economies that have become aged both in terms of median age and in terms of growth prospects. Furthermore, India is also blessed with abundant human resources that are technologically skilled and making significant contributions to the futuristic fields of space, AI, and Gen-AI," Srivastava said.
According to the IMF's latest World Economic Outlook Update report, India is poised to grow at 6.4 per cent in 2025 as well as 2026. This is also an upward revision from IMF's April forecast of 6.2 and 6.3 per cent, respectively.
Similar projections have been made by other international agencies like Washington-headquartered World Bank, the Asian Development Bank (ADB) and Paris-based Organisation for Economic Cooperation and Development (OECD).
While the World Bank and OECD have projected India's GDP growth at 6.3 per cent for FY26, ADB estimates it at 6.5 per cent.
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