India contributes more to global growth than US, RBI chief Sanjay Malhotra says

Malhotra also cited the latest growth forecasts by the International Monetary Fund, which had estimated economic expansion of 6.4% for India and 1.9% for the US in 2025.

By Ruchi Bhatia

Governor of the Reserve Bank of India said the country contributes more to global growth than the US, responding to President Donald Trump’s recent remark dismissing the South Asian nation as a “dead” economy.

“We have a very robust growth rate,” Governor Sanjay Malhotra told reporters after a policy meet on Wednesday. “We are contributing about 18 per cent which is more than US, where the contribution is expected to be much less at about 11 per cent or something. We are doing very well and we will continue to further improve.”

Malhotra also cited the latest growth forecasts by the International Monetary Fund, which had estimated economic expansion of 6.4 per cent for India and 1.9 per cent for the US in 2025.

Trump said Tuesday he’ll increase the 25 per cent tariff on Indian exports to the US “substantially over the next 24 hours,” citing the South Asian nation’s high barriers to trade and its purchases of Russian oil.

Last week, Trump lumped India with Russia as “dead economies,” criticizing the country for its trade barriers and continued purchases of Russian weapons and energy.

Earlier in the day, the Reserve Bank of India held interest rates at 5.50 per cent, as policymakers assess the impact of tariffs on the economy. While the central bank retained its growth forecast for the current fiscal year that started in April at 6.5 per cent, the governor said he will closely watch incoming data before taking further action.