India-US Tariff War / Trump will sweat after seeing India's figures, our economy will start feeling 'dead'

India-US Tariff War: Recently, U.S. President Donald Trump announced a 25% tariff on India and labeled the Indian economy as "dead." He further stated that if India and Russia want to "sink together with their dead economies," he wouldn't care. This statement triggered strong reactions in India's political and economic circles. But is Trump’s claim accurate? Let’s analyze India's economy through international data and facts.

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India’s Economy: Declining or Thriving?

Contrary to Trump’s claim, data from the International Monetary Fund (IMF), Time Magazine, and other global institutions present India as not only a vibrant economy but also a future global superpower.

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1. Historic Growth

• IMF Data: From 1995 to 2025, India's economy is projected to grow nearly 12 times, while the U.S. economy has grown only 4 times.

• Comparative Performance: The UK and Germany have lagged behind India, and Japan's GDP in 2025 may be lower than its 1995 level.

• Compared to the U.S.: In 1995, India's GDP was just 5% of the U.S.. By 2025, it's expected to reach 14%.

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2. India’s Global Standing

• 4th Largest Economy: With a GDP of over $4.18 trillion in 2025, India ranks as the world’s fourth-largest economy.

• Growth Rate: India’s expected growth rate of 6.5% (2025-26) is higher than both the U.S. (1.9%) and China (4.8%).

• Global Contribution: By 2030, India could be the second-largest contributor to global GDP growth, after China.

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3. India’s Strengths

• Young Workforce: India’s growing young population over the next two decades will create a massive consumer market. In contrast, aging populations in countries like the U.S. could hinder growth.

• Digital Progress: Rapid advancements in India’s digital economy are boosting overall economic activity.

• Lower Debt Burden: India’s debt-to-GDP ratio is 83%, while the U.S. exceeds 123% and has even faced default threats multiple times.

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India’s Challenges

Despite its strengths, India must address several issues:

• Manufacturing Growth: Since 2019–20, the manufacturing sector has grown at only 4% annually, which is relatively low.

• Poverty & Inequality: About 24% of the population still lives below the poverty line, and the wealth gap is widening.

• Unemployment: High unemployment, especially among educated youth, and low-paying jobs remain pressing concerns.

• Women’s Participation: Female workforce participation is low, and women often receive inadequate pay.

• Basic Services: Sectors like health and education need significant improvement and investment.

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Global GDP Comparison (1995 vs. 2025)

Future Outlook

According to a 2023 report by Time Magazine, if India continues to grow at a strong pace, it could overtake the U.S. economy by 2073. India’s young population, digital revolution, and expanding consumer base position it to become a global economic leader.