Then Trump called India a dead economy and should grow like India today Donald Trump praises the Indian economy, says India is growing at 7-8%
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Business desk
Published: Jul 4, 2026 06:00 pm IST
1 minute Read
Prime Minister Narendra Modi (Image credit: narendramodi.in) and US President Trump (Image credit: Shutterstock)
US President Donald Trump praised India’s financial sector. In a television interview, he said the Indian economy is performing well and growing at 7-8 percent. He said better economic growth should not be a criterion for higher interest rates and that America should be allowed to grow like India. Trump’s announcement comes amid reports that he may raise the US benchmark interest rate. Trump is a proponent of lowering interest rates. Last year, as the trade war raged, Trump called India a “dead economy.”
It is also interesting to note that Trump used India as an example to prove that the American economy is doing well. The best performing countries should not be constrained by austerity economic policies. Why stop economic growth at 4 percent? We must try to bring GDP growth to twelve to thirteen percent. America is now experiencing a golden age. More factories are opening now than before. Stock markets have reached new highs. He also said employment opportunities are at record levels. He added that the administration is better now than in his first term.
“Dead economy” of that time
Last July, Trump made a “dead economy” remark about India while criticizing trade relations with Russia. Trump also said that he doesn’t care what India and Russia do together, they can make their economy worse. Trump then announced a 25 percent tariff on India. It is believed that Trump was motivated by the impossibility of concluding a temporary trade agreement with India, bypassing sanctions and the purchase of oil by Indian companies from Russia. Trump remembered to impose additional tariffs of 25 percent in August while continuing to buy Russian oil.
Behind the change in attitude
Relations between India and Trump have changed a lot over the year. The two countries have reached a rough agreement on a trade deal. The central government says that only 1% of the barrier remains to sign the agreement. The contract is expected to be signed in December after due diligence is completed. There is also information that Prime Minister Narendra Modi has been invited to America for this purpose. US officials also say Trump will visit India early next year.
English summary:
Why is Donald Trump now praising the Indian economy when he once called it a “dead economy”? This is what has changed in India-US relations and trade negotiations.
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