Modi Rebuffs Trump’s “Dead Economy” Label, Highlights India‘s Infrastructure Boom Amidst Trade Dispute
Bengaluru, India – August 10, 2025 – Prime Minister Narendra Modi today directly responded to recent critical remarks from U.S. President Donald Trump, asserting India is rapidly progressing towards becoming one of the world’s top three economies. The statement came during a public address in Bengaluru, Karnataka, and follows Trump’s reported dismissal of India as a “dead economy” linked to ongoing trade tensions over India’s continued oil imports from Russia.The exchange underscores a growing friction in U.S.-India trade relations,escalating last week when the Trump administration doubled tariffs on certain Indian goods to 50 percent. This action specifically targeted India’s decision to continue purchasing crude oil from Russia, defying U.S. sanctions imposed following the invasion of Ukraine in February 2022.
Speaking in Bengaluru, PM Modi emphasized the momentum driving India’s economic growth, attributing it to a focus on “reform, perform, and transform” coupled with “clear intention and honest efforts.” He detailed critically important infrastructure advancements achieved as his administration took office in 2014, presenting a counter-narrative to Trump’s assessment.
“We are rapidly moving towards becoming the top third economies,” Modi stated.He cited specific examples, including the expansion of metro rail networks from five cities in 2014 to 24 cities with over 1,000 km of operational lines.He further highlighted the electrification of rail routes, increasing from approximately 20,000 km to over 40,000 km in the last eleven years.
The Prime Minister also pointed to the growth in India’s airport infrastructure, rising from 74 airports in 2014 to over 160 currently. He noted a similar expansion in waterway infrastructure, increasing from 3 operational national waterways to 30. These projects, many overseen by the Ministry of Ports, Shipping and Waterways under Minister Sarbananda Sonowal, are key components of India’s “Sagar Mala” initiative aimed at modernizing ports and enhancing connectivity.
India’s Ministry of External Affairs (MEA) has formally condemned the increased U.S. tariffs, labeling them “unfair, unjustified and unreasonable.” A statement released on August 8th indicated India will take “all actions necesary to protect it’s national interests.” Sources within the MEA, speaking on background, confirmed that India is exploring options with the World Trade Organization (WTO) to challenge the tariffs.Context & Long-Term Implications:
This dispute occurs within a broader context of shifting global economic alliances. India, the world’s moast populous nation, has strategically maintained its relationship with Russia, securing discounted oil supplies crucial for its energy security. This decision, while benefiting india’s economy, has drawn criticism from the U.S. and its allies who are attempting to isolate Russia economically.
India’s economic trajectory is increasingly significant. Currently the world’s fifth-largest economy, projections from institutions like the International Monetary Fund (IMF) and the World Bank suggest India could become the third-largest by 2030, surpassing Japan and Germany. this growth is fueled by a burgeoning middle class, a young and increasingly skilled workforce, and a growing digital economy.
The current trade tensions with the U.S. could perhaps impact India’s economic growth, notably in sectors reliant on exports to the American market, such as pharmaceuticals, textiles, and engineering goods.Though, India is actively diversifying its trade partnerships, strengthening ties with countries in Southeast Asia, the Middle East, and Africa. The India-Middle East-Europe Economic Corridor (IMEC), announced during the G20 summit in New Delhi in September 2023, represents a key element of this diversification strategy.
The situation remains fluid, and further negotiations between the U.S. and India are anticipated. The outcome will likely shape the future of the bilateral relationship and have significant implications for the global economic landscape.
Published By: Sahil Sinha
Published On: Aug 10, 2025