Dear Rahul Gandhi and Donald Trump, India's economy isn't dead

Indian Express

a day ago

'Those who speak without knowledge are like the blind describing the sun.' — Mahabharata, Shanti Parva
In their misplaced zeal for attention, Donald Trump and Rahul Gandhi have found common cause — declaring the Indian economy 'dead'. If only the facts were as loyal to them as their soundbites are to their need for self-aggrandisation. Trump's utterance, given the way he has behaved post his election victory, was expected. But Rahul Gandhi's reflexive concurrence, parroting anti-India narratives for short-term political gains, raises deeper questions. Is he now India's most committed amplifier of foreign mockery? There are two clear ways to answer this 'dead economy' trope: One with data, and another with diplomacy's hard logic. First, let's follow the numbers.
Between 2015 and 2025, India has emerged as the fastest-growing major economy, clocking average real GDP growth of 6.5 per cent compared to 4.1 per cent for emerging economies and 1.8 per cent for OECD countries. In contrast to India's 2004-14 boom, powered by global tailwinds and credit splurge (and even then, India grew slower than the world, slower than emerging economies and much slower than China), this decade's growth under the Modi government came despite disruptive reforms like demonetisation and GST and a pandemic.
India is set to become the fourth-largest economy in the world, surpassing the UK and Japan. It accounted for a disproportionately large share of global growth, outpacing all G7 economies in both nominal and real terms. Its 105 per cent nominal GDP expansion between 2015 and 2025 dwarfed the US (66 per cent), Germany (44 per cent), and the UK (28 per cent). While Japan and parts of the Eurozone have almost stagnated, India's growth has been three times faster. It has also significantly narrowed the income gap in per capita terms with OECD nations. Notably, India is projected to overtake Germany soon to become the world's third-largest economy.
India led global IPO charts in 2024 with 327 offerings, and the National Stock Exchange now ranks among the top 5 globally. Foreign portfolio flows have surged. Indian equity markets have delivered 16 per cent average annual returns, outshining nearly every peer.
During the UPA decade, India's growth lagged behind China, Brazil, and Russia. India outgrew all BRICS economies in 2015-25, outpacing even China in percentage growth over the last five years. Even in per capita income growth, India's rise has been steeper, moving from 30 per cent of average of emerging market economies in 2014 to 42 per cent in 2024.
Under the Modi government, exports surged from $468 billion to $825 billion. Defence exports rose twelvefold. Digital India created world-beating platforms like UPI, now processing 49 per cent of all real-time digital payments globally. Inflation, which averaged 8.2 per cent in the UPA era, has been brought down to around 4.5 per cent. Forex reserves have more than doubled. Poverty has fallen at a historic pace, with 25 crore people being lifted out of multidimensional poverty, according to the NITI Aayog. The World Bank has reported that extreme poverty dropped from 16.2 per cent to 2.3 per cent.
The contrast between the UPA era and the Modi era is stark. From policy paralysis to policy propulsion. From scams to startups. From a lagging BRICS economy to its leader. India under Modi has not only grown faster but in a cleaner and more inclusive way, and is globally more respected. Over 55 crore Jan Dhan accounts, Rs 34 lakh crore Mudra loans and the world's largest vaccination drive are signals of a state that knows how to implement projects. India today doesn't just aim to be included, it wants to lead the table — that alone marks the death of the 'dead economy' narrative.
If India's economy were dead, why is the UK calling its FTA with India the most ambitious in its history? Why are EFTA countries committing $100 billion in investments? Why indeed is the USA chasing trade deals? Why is it that now most iPhones sold in the USA are manufactured in India? Why is it that Canada, a country hostile to India for over a decade, could still not do without India in the G7 it hosted? One could even ask President Trump if the Indian economy is indeed dead, then why is he talking about India in every second press conference he does?
India's economy is dynamic, data-backed, and destined for leadership. That this needs to be said in 2025 is unfortunate. That Rahul Gandhi finds himself echoing Trump's casual derision is tragicomic. Perhaps Gandhi thinks aligning with every outsider who insults India will somehow reanimate his politics. But India has moved on from dependency to self-belief, from slogans to substance. The only thing lifeless here isn't the Indian economy. It's the political instinct that cheers when India is jeered.
The writer is CEO, Bluekraft Digital Foundation and was earlier director (content), MyGov