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New Delhi: The Indian economy is 'doing very well,' and it is making more contributions to global growth than the US, said RBI Governor Sanjay Malhotra on Wednesday, 6 August, days after US President Donald Trump made a scathing remark on the Indian economy. President Trump, while announcing new tariffs for India and an additional punitive penalty for buying Russian oil, said that the Indian economy is a dead economy.
"I don't care what India does with Russia. They can take their dead economies down together," Trump had reportedly said.
India is doing well and is expected to grow at 6.5 percent as against the IMF predictions of 3 percent global growth in the year 2025, said Malhotra during a post-briefing press conference in their headquarters, Mumbai.
"We are contributing about 18 percent, which is more than the US, where the contribution is expected to be much less -- about 11 percent or something. We are doing very well, and we will continue to improve further," Malhotra said, replying to a question on Trump's recent comments.
Malhotra said an ideal growth rate for sustained development of India should be more than 6.5 percent, which the RBI is projecting for FY26. The Central Bank Governor further said that the country has grown at a yearly average rate of 7.8 percent in the past.
Currently, the trade policy negotiations are ongoing between India and the USA for their bilateral trade agreement (BTA). Trump made these controversial comments as India was buying Russian oil (crude) at discounted price.
President Trump's statement possesses the ability to destabilize the existing India-US relationship. The statement further solidifies the certainty of the upcoming tariffs and penalty for buying cheap discounted Russian crude oil.
The RBI governor said that the RBI is not expecting any potential inflationary impacts on the Indian economy due to Trump's tariffs. Additionally, just in case of the event of India drifting away from Russian oil because of US tariffs and its sensitivities, there will not be any impact on the domestic inflation, Malhotra further said.
He assured that authorities will take necessary steps to ensure that the purchasing price of petroleum does not burn a hole in the common man's pocket.
