After Calling India a “Dead Economy,” Trump Now Faces a Crisis at Home

In July, U.S. President Donald Trump sparked outrage when he mockingly described India as a “dead economy.” Dismissing concerns about growing cooperation between New Delhi and Moscow, Trump said he “didn’t care what India and Russia were doing,” adding sarcastically that the two nations could “drag their dead markets even lower” if they wished.

His comments came amid Washington’s pressure on India to curb Russian oil imports—pressure that New Delhi resolutely ignored. Yet, barely three months later, Trump and the United States find themselves grappling with their own economic turmoil.

The U.S. federal government has now entered its seventh day of shutdown, following a failure to pass a crucial spending bill. With no agreement on funding legislation, the administration has been forced to suspend operations, leaving Trump dependent on cooperation from opposition Democrats to reopen the government.

The shutdown, which began on October 1, has brought most federal offices to a standstill, excluding essential services such as healthcare, border patrol, and air traffic control. Even NASA’s operations have been disrupted. Hundreds of thousands of federal employees have been placed on unpaid leave, and Trump has warned that more layoffs could follow if the impasse continues.

The deadlock arose over a bill that would have ensured funding through November. Democrats insisted the package include provisions to continue healthcare subsidies—demands Trump rejected, plunging the government into crisis.

Trump has accused Democrats of deliberately engineering the shutdown despite what he describes as strong economic performance and healthy market growth. He has, however, expressed willingness to return to negotiations.

Ironically, while Trump derided India’s economic performance, India has emerged as the world’s fastest-growing major economy. During the April–June quarter, India’s GDP grew by 7.8%, outpacing China (5.2%), the United States (3.3%), Japan (0.4%), Germany (-0.3%), the United Kingdom (0.3%), and Indonesia (5.12%). It marked India’s strongest growth in five consecutive quarters.

Adding to India’s momentum, U.S.-based rating agency S&P Global Ratings recently upgraded the country’s sovereign credit outlook from “BBB Negative” to “BBB Positive”, citing strong fundamentals, fiscal discipline, and reliable debt repayment capacity.

Trump’s earlier criticism of India stemmed from its continued purchase of discounted Russian crude, despite U.S. sanctions. He had even imposed a 50% tariff on certain Indian imports. However, analysts believe the real source of his frustration was India’s firm stance during trade negotiations. Washington had demanded that India open its market to U.S. agricultural and dairy products by reducing tariffs—a move New Delhi resisted, fearing renewed farmer protests.

Trump was also reportedly displeased when India refused to endorse his claim of having mediated peace between India and Pakistan.

In the end, the irony could not be sharper: the nation Trump once mocked as a “dead economy” now stands as a symbol of stability and growth, while the United States and its president wrestle with a self-inflicted economic and political deadlock.