‘Can dead economy grow at 8.2%?’: Nirmala Sitharaman hits back at Opposition, rebuts Trump’s ‘dead economy’ jibe

In a strong response to US President Donald Trump’s earlier remark on calling India 'dead economy' and amid criticism from the Opposition on the same matter, Union Finance Minister Nirmala Sitharaman on Monday told Parliament that while global growth is 3.2 per cent, India is growing at 8.2 per cent, emerging as the fastest-growing major economy. Earlier in July, Trump described India as a "dead economy" in a Truth Social post, criticising New Delhi’s decision to continue buying oil from Russia.

Global recognition for economic reforms

She further cited upgrades given by major global institutions such as Morningstar DBRS, S&P and R&I.

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"Every institution is racing our growth outlook for this year and for the fourthcoming year. IMF chief Cristina George Eva on 14th October 2025 said I'm a very I'm very big on India because of the boldness of their reforms. India has proven the naysayers wrong. So there are clear expressions recognising India's growth and no debt economy gets a credit rating upgrade by DBRS, SNP and R&DI," she stated.

Sitharaman questioned why, if the economy were “dead” as claimed by the US president and echoed by the Opposition, global institutions would upgrade India’s growth forecasts and credit ratings. "So somebody said something somewhere however important that somebody is we should not depend on that but rely on data available within the country and also data coming from elsewhere rely on data. Can a debt economy grow at 8.2 per cent? Can a debt economy get credit rating upgrades? So constantly looking at someone and saying oh you said that what is it what do you want to say? Numbers are saying it, sir," she remarked in her Lok Sabha address.

Also Read: IMF’s grading of India's data overlooks key points: Report

Clarification on IMF’s C-grade

On the IMF’s earlier C-grade for India’s National Accounts Statistics (GDP data) in its 2025 report, Sitharaman clarified that the grade reflected the continued use of 2011-12 as the base year. "Not even a week ago I stood in this house and explained what is that Cgrade? What is it for? Singularly it is for the fact that we are still keeping 2011-12 as the base year and Ministry of Statistics and Program implementation has already announced that from late January 2026 the base year transition will happen," she explained, adding that the overall median rating remained B and there was no downgrade.

Despite challenges like Covid-19, India has remained the fastest-growing major economy for three to four consecutive years. She highlighted that India overcame high twin deficits — a fiscal deficit of 4.9 per cent and a current account deficit of 4.8 per cent in FY13 — while WPI inflation in food articles averaged 12.2 per cent annually during 2008-2013.

India emerging as net exporter

The finance minister also emphasised India’s emergence as a net exporter in electronics, pharmaceuticals, engineering goods, and defense. "In 2014-15, the production of electronics good was Rs 1.9 lakh crore. In 2024-25, it is Rs 11.3 lakh crore. In 2014-15, exports of electronics goods was Rs 38,000 crore. In 2024-25, it is Rs 3.27 lakh crore. In 2014-15, there were 2 Mobile manufacturing units. In 2024-25, it has increased to 300," she said.

Highlighting inclusive growth, she noted that the Bottom 40 per cent of the population is acquiring wealth and assets faster than the Top 20 per cent. “Inequality in asset ownership has massively declined, particularly in urban areas where the disparity for key assets like motor vehicles and refrigerators has shrunk dramatically. The Rural Poor have experienced a significant growth in purchasing power," she added.

Also Read: IMF raises India's GDP growth forecast; estimated to be 6.6% in FY26

A look at credit rating upgrades

Earlier in September, Rating and Investment Information, Inc. (R&I) upgraded India’s long-term sovereign credit rating to ‘BBB+’ from ‘BBB’, while retaining a “Stable” Outlook. This marked the third upgrade this year, following S&P’s upgrade to ‘BBB’ in August 2025 and Morningstar DBRS’ upgrade to ‘BBB’ in May 2025, reaffirming India’s position as one of the most dynamic and resilient major economies in the world.

The upgrades were attributed to India’s sustained growth, improving fiscal position, strong domestic demand, digitisation, and government initiatives to boost the business environment.