India Contributing More To Global Growth Than US, Says RBI Governor

Reserve Bank of India (RBI) Governor Sanjay Malhotra has said India's economy remains robust and continues to play a leading role in global growth, countering recent remarks by former US President Donald Trump, who called India's economy "dead."

At the press briefing following the monetary policy meeting, Malhotra said India is contributing nearly 18 per cent to global GDP growth, higher than the United States. He added that the Indian economy is "doing very well" and is on track to achieve its projected growth rate of 6.5 per cent for the current financial year.

Trump's Comments Stir Debate

Trump's "dead economy" remark, made during a public event, raised concerns in diplomatic and economic circles. Without calling out Trump directly, Malhotra indirectly addressed the criticism by mentioning India's strong fundamental growth, rising domestic demand, and resilient economic indicators.

"We have maintained a steady growth momentum, and our macroeconomic indicators reflect stability," he said.

Trade Risks From US Tariffs

Malhotra also flagged potential trade risks if the US were to reintroduce protectionist policies, especially under the Trump administration. India, while less vulnerable than in previous years, remains exposed to global trade shocks, he said.

"Increased tariffs or disruptions in global trade could impact export performance," Malhotra noted. "We are closely monitoring these developments."

Repo Rate Held Steady

Amid global uncertainties, the RBI's Monetary Policy Committee decided to keep the repo rate unchanged at 5.50 per cent. The central bank cited a moderate inflation outlook and stable growth prospects as reasons for maintaining the current rate.

Malhotra reiterated that the RBI's monetary stance remains focused on controlling inflation while supporting growth. "We are taking a calibrated, data-driven approach," he said.

Positive Outlook Despite Headwinds

Despite external risks, RBI remains optimistic about India's economic trajectory. Growth in manufacturing, services, and capital investment remains healthy, and inflation is expected to stay within the central bank's target range.

Malhotra emphasised that India's policy framework, growing domestic market, and strong financial institutions place it in a favourable position globally. "We are well-placed to weather global uncertainties," he concluded.