India contributes more to global growth than US:RBI Governor

India contributes more to global economic growth than the United States, Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Wednesday, pushing back against U.S. President Donald Trump’s recent criticism of India as a “dead economy.”
“We have a very robust growth rate,” Malhotra told reporters after the central bank’s policy meeting. “We are contributing about 18 per cent to global growth, which is more than the U.S., where the contribution is expected to be much less—about 11 per cent or something. We are doing very well and we will continue to further improve.”
Malhotra’s remarks came shortly after Trump threatened to sharply raise tariffs on Indian exports within 24 hours, citing India’s high trade barriers and its ongoing purchases of Russian oil. Last week, Trump had clubbed India with Russia as "dead economies," accusing both of relying on unfair trade practices and energy ties with Moscow.
The RBI governor referred to the International Monetary Fund’s latest growth projections, which estimate India’s economy to expand by 6.4% in 2025, compared to a much lower 1.9% forecast for the U.S.Earlier in the day, the RBI kept its benchmark interest rate unchanged at 5.50%, opting for caution as policymakers assess the economic impact of the evolving tariff environment.

The central bank also retained its GDP growth forecast for the current fiscal year at 6.5%.“We will watch the data closely,” Malhotra said, “and take appropriate steps as required to support stability and growth.”

(Business Correspondent)