Indian economy contributing more to global growth than US: RBI Guv Malhotra

RBI Governor Sanjay Malhotra says India contributes 18% to global GDP versus US share of under 11%, retains FY26 growth forecast at 6.5% despite Trump's 'dead economy' remark

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday said the Indian economy is contributing more to global growth than the United States. He made the remark during the post-monetary policy press conference.

 

When asked for his views on US President Donald Trump calling the Indian economy “dead”, Malhotra said: “We have a very robust growth.” As per the International Monetary Fund (IMF), India is projected to grow at 6.5 per cent, while world growth is expected at 3 per cent.

 

He added that India contributes about 18 per cent to global GDP, which is more than the US, where the contribution is expected to be below 11 per cent. “So, we are doing very well and will continue to further improve,” he said. 

 

Malhotra noted that India continues to aspire for higher growth. “Our aspirational growth is more than 6.5 per cent. In the past, we have achieved an average of 7.8 per cent, so we should continue to aim for higher growth rates,” he said. The RBI has retained its FY26 growth forecast at 6.5 per cent.

 

Trump, in a post on his social media platform Truth Social, called India a “dead economy” and criticised the country’s trade policies. “I don’t care what India does with Russia,” he wrote. “They can take their dead economies down together, for all I care. We have done very little business with India. Their tariffs are too high, among the highest in the world,” Trump said.