US President Donald Trump has also expressed his anger and anger in the tariff battle with India. He described India as well as Russia’s economy as a ‘dead economy’. Trump expressed his annoyance and said that what India and Russia do does not make sense to them. If both countries want, they can take their dead economy into the trough.
Please tell that ‘Dead Economy’ is a non-technical word. Generally, economic experts use the term ‘Dead Economy’ when an economy fails inactive, sectary or completely fails. It shows lack of economic growth, high unemployment, minimum production, weak trade activities or financial instability.
Significantly, this word is not formally used in economic analysis. It is often used for political statement. Donald Trump calls India a “Dead Economy” is a similar statement that was part of India’s criticism on trade and tariff policies with Russia.
But Trump, who described India’s economy as ‘dead’, did not see the American economy struggling to gain 1.9% growth.
If Trump would have understood the economy of Venezuela, Zimbabwe, Afghanistan and Egypt, it would have been understood to some extent, but Trump has beat up his own fierce by calling the fourth big economy of the world and the third position in a few years as a dead.
Let’s understand the condition of the economy of Venezuela, Zimbabwe and Afghanistan?
Venezuela
Venezuela’s economy can be called “Dead Economy”. However, in any context, it does not mean to call the economic system of this country derogatory. But it is true that Venezuela’s economy is going through a serious economic crisis. Since 2013, the fall in oil prices and government mismanagement demolished the economy here. Venezuela which is dependent on oil exports and saw a huge reduction in revenue in recent times.
This country is going through hyper inflation. According to the International Monetary Fund, inflation in Venezuela increased by 1 crore percent at the end of 2019.
This uncontrolled inflation had made the currency of Venezuela Bolivar useless. The purchasing power of the citizens was over. He used to take money in sacks every day and brought goods in small polythene bags.
Unemployment and food crisis forced over 7 million people to migrate. Government policies, such as price control and lack of privatization, stalled production.
The collapse and international restrictions of the infrastructure worsened the situation. All these factors together make Venezuela’s economy inactive and “dead”.
Zimbabwe
Given the economic condition of Zimbabwe, the economy of this country can also be called “Dead Economy”. In the 2000s, the land reform policies of President Robert Mugabe destroyed agricultural production, which was the backbone of the economy.
Hyperineflation (231 million%in 2008) made Zimbabwe’s dollar useless. Finally, in 2009, this currency had to be abandoned.
Extreme corruption in Zimbabwe, government mismanagement and fierce decrease in foreign investment weakened industrial and mining sectors. The per capita income here in 2025 is only $ 1,500. More than 70% of the population here is below the poverty line. Zimbabwe is struggling with unemployment and widespread food insecurity. Lack of infrastructure and power crisis further limit production.
These factor make Zimbabwe’s economy sedent and “dead”.
Afghanistan
The economy of Afghanistan also falls in the category of more or less passive economy. Because it is struggling with serious crisis and lack of stability. Afghanistan’s economy shrunk 27% after the Taliban returned to power in August 2021. In 2023, the GDP here was only $ 17.33 billion. Many foreign institutions including the US imposed restrictions on Afghanistan. Foreign aid to Afghanistan which was 40% of GDP first stopped.
Foreign agencies freeze the $ 9 billion of the central bank of Afghanistan present in other countries, which collapsed the banking system here and created a terrible cash crisis. In Afghanistan, 15 million people are currently struggling with food insecurity. Unemployment is close to 20%, and Taliban restrictions on women have further limited economic participation. Agriculture which provides 40% employment is dried and affected by lack of resources. However, in 2024, GDP of 2.5 percent increased here.
It can be understood from the example of these three countries what the dead economy is. A few years ago, the economy of Egypt and Sri Lanka was also a victim of similar mistakes and careless. However, these countries have corrected their situation with active intervention and honest efforts.
Therefore, it can be said that when trade, production and investment in a country are almost closed or very low.
Jobs are very low or a large number of people become unemployed.
The power of public earning and spending decreases a lot.
New businesses do not open, old companies also start closing.
Both demand and supply in the market become weak.
Food crisis arises. So such a situation can be a sign of dead economy for a country.
Why is Trump wrong on India?
Strong economic development
Trump may describe India as a dead economy in his splash, but he forgets India’s economy in 2025 and it is the fourth largest economy in the world. India’s economy is going to be third in a few months. According to the International Monetary Fund and World Bank estimates, India’s GDP (GDP) is growing at an average annual rate of 6-7% between 2022-2025, which is more than 3% of the global average.
President Trump forgets when India’s economy was dead, that in 2024-25, bilateral trade between India and America was $ 131.84 billion. In which India’s exports were $ 86.51 billion and imports were $ 45.33 billion. India is the ninth largest trading partner in America. This sign is not of any dead economy.
Agencies like World Bank, S&P, and Moody’s have described India as the fastest growing major economy in the world.
Many CEOs educated from India are handling the leadership of veteran companies of America. Among them, Google CEO Sundar Pichai, Microsoft CEO Satya Nadella, IBM CEO Arvind Krishna are a few selected names. Such world class talent does not come out of any dead or dead economy.
Economic indicators are stable and elevated
At present, India’s foreign exchange reserves are more than $ 700 billion in 2025. This strong position of India enables it to face global economic shocks.
India’s inflation rate is about 4-5%. The unemployment rate is 7-8% and is under control. The government is spending hugely on manufacturing. Roads, railway networks, metro networks, airports are expanding rapidly in India. This is not only generating employment but also changing the picture of economy. This is a sign of a dynamic economy.
Food safety
India’s food safety and food stores are strong in 2025, India’s wheat reserves are at a four -year highest level till 1 July 2025 due to favorable monsoon and record purchase. And rice reserves are also at a record level. It ensures price stability and food security through public distribution system and market intervention.
Actually, India’s economy is not only alive and growing rapidly in 2025, but it is emerging as an important player on the global platform. India is a player standing firmly on the world platform who has the ability to influence and change the world’s geopolitical movements. GDP growth of 6-7%, abundant foreign exchange reserves, partnerships on many platforms, indigenous defense industry, service sector emergence shows India’s economic strength. In such a situation, Trump’s statement seems to be a part of his diplomacy and strategy.
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