India answers Trump’s ‘dead economy’ jibe with 7.8% GDP growth; Industry leaders, economists hail resilience

Industry bodies highlight resilience

Jyoti Vij, Director General of FICCI, called the 7.8 percent figure 'a testament to India’s resilience.' Speaking to ANI, she said the economy is well-positioned to ride out near-term global challenges, citing “strong domestic demand and new market opportunities” as anchors.

"India's growth story reflects the underlying strengths of the Indian economy, strong fiscal boost through increased government expenditure, great performances by services and manufacturing, and of course, continued reforms. At 7.8 per cent GDP growth, not only would India be the fastest growing, but this would also be standout growth in the face of many global headwinds," CII President Rajiv Memani said.

"India's real GDP growth of 7.8 per cent in the first quarter of FY2025-26 is a remarkable achievement ... This outcome reinforces India's position as the fastest growing large economy in the world, at a time when global growth is facing significant headwinds," CII Director General Chandrajit Banerjee said.

Global voices join the chorus

India’s growth has also drawn international attention. Kyunghoon Kim, Head of the India and South Asia team at the Korea Institute for International Economic Policy, quipped that the economy is “very much alive,” in a pointed reference to Trump’s “dead economy” dig.

Economists back the momentum

Professor Shamika Ravi, Economic Advisor to the Prime Minister, called the growth figures “‘Dead’ly news for global growth,” underscoring the irony of Trump’s comments.

Anuradha Thakur, Economic Affairs Secretary, broke down the numbers in detail, noting that agriculture, manufacturing, construction, and services all delivered “all-round growth.” She added that strong rabi harvests, above-average kharif sowing, healthy rainfall, and a steady buffer stock had boosted rural demand.

On the investment side, she pointed out that government capital expenditure in Q1 was nearly 30 percent higher than the three-year average, powering infrastructure momentum.

“We feel that going forward, the outlook remains positive,” Thakur said. “Agriculture is a strong reason for confidence, and high-frequency indicators show consumption will hold up.”

Policy voices weigh in

Sanjeev Sanyal, Member of the Prime Minister’s Economic Advisory Council, described the 7.8 percent expansion as “quite robust,” while Union Minister Piyush Goyal used the data to take a political swipe at the Opposition.

“It has not taken the government by surprise,” Goyal said. “It is the naysayers and pessimists like Rahul Gandhi, who think India is a dead economy, that have been given a resounding response by the people of India.”

Petroleum Minister Hardeep Singh Puri on Saturday said India’s 7.8 percent GDP growth in the last quarter is not just a number but is reflected across sectors, particularly energy.

“We are now a $4.3 trillion economy. Growth is visible beyond GDP figures, in rising activity and energy use. India’s energy consumption is three times higher than the global average,” he told reporters in Delhi, adding that the country remains the world’s fastest-growing large economy with back-to-back robust quarters of 7.4 and 7.8 percent growth.

The Trump factor: tariffs and tirades

Trump, earlier this month, unveiled a 50 percent cumulative tariff package on Indian imports, targeting New Delhi over its purchase of Russian oil. He declared:

“I don’t care what India does with Russia. They can take their dead economies down together, for all I care.”