Facts speak for themselves: Chief Economic Advisor on Trump's 'dead economy' jibe

Chief Economic Advisor Dr V Anantha Nageswaran has said India does not need to respond to the US President’s recent description of it as a “dead economy,” insisting that growth numbers and global ratings are already setting the record straight.

“We should let the facts speak for themselves as they have been doing, regardless of who it is that is saying this I don’t think we should dwell on that particular remark and want to respond to that because the facts are responding in their own way,” Nageswaran told India Today.

“By no stretch of imagination or argument or evidence, can India be classified as a dead economy. Far from it. It’s a dynamic economy,” he added.

He pointed out that India had managed to halve its fiscal deficit ratio since the pandemic year of 2021, while also emerging as the fastest-growing G20 economy. “The post-COVID recovery in combination with fiscal prudence, fiscal responsibility is a template that India has been able to set for other nations. And that is a fact,” he said.

Responding directly to the remark from Washington, Nageswaran underlined that India does not need to issue rebuttals. “At the end of the day, we should let the facts speak for themselves as they have been doing, regardless of who it is that is saying this. Because if you look at the IMF forecast or the credit rating upgrade, these are more concrete acknowledgments of the hard work and the progress that we have achieved. So, therefore, I don’t think we should dwell on that particular remark and wanting to respond to that because the facts are responding in their own way,” he said.

Nageswaran also noted that Standard & Poor’s had recently upgraded India’s sovereign rating after two decades, calling it “the most concrete setting the record straight development.”

While addressing tariff concerns, he acknowledged that exporters in sectors such as marine products, textiles, gems and jewellery would face short-term hardship, but remained confident that India would weather the impact. He also highlighted the government’s efforts to conclude free trade agreements with countries including Australia, the UAE, the UK, and the EU.

On the Prime Minister’s announcement of next-generation GST reforms, Nageswaran said the changes would reduce the indirect tax burden on common consumption items, lower input costs for businesses, and add to household disposable income. “The Prime Minister was very right to label it sort of a next generation reform and it will be a Diwali gift,” he said.

Emphasising that global churns force countries to reset policies, Nageswaran said India has historically emerged stronger from crises — including the 1991 reforms, the banking sector clean-up in the last decade, and the COVID response. “Every generation faces a churn and an inflection point, which makes it imperative for countries to reset, reexamine their previous practices and policies and adapt. And I’m sure we will,” he said.

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