When Donald Trump recently called India a “dead economy,” it sparked global headlines and trended across social media. For many, this bold remark raised questions — is there any truth to it? Is India really falling behind, or is something else happening beneath the surface?

While the term “dead economy” might make for great clickbait, India’s recent economic data tells a very different story — one of resilience, expansion, and global leadership. From strong GDP growth to booming exports and a youth-driven workforce, India is proving itself far from stagnant.

Contrary to claims of economic stagnation, India’s economy is not just alive — it is accelerating. Despite global challenges like inflation, interest rate volatility, and geopolitical friction, India continues to outperform most major economies. Backed by strong fundamentals, a young population, and targeted policy reforms, India stands poised for long-term growth.

One of the clearest indicators of India’s economic health is its consistently high GDP growth rate. According to the International Monetary Fund (IMF), India is expected to grow at 6.5% in FY 2024–25, maintaining its position as the world’s fastest-growing large economy^[7].

Table 1: India’s Real GDP Growth (Fiscal Years)

Alongside growth, India’s manufacturing strength is expanding rapidly, largely due to the Production-Linked Incentive (PLI) scheme. This initiative has boosted domestic production and exports, particularly in electronics and pharmaceuticals.

Export Growth by Sector (FY 2024–25)

Another key strength is India’s demographic profile. With a median age of just 28.2, India has one of the youngest populations in the world. In comparison, China’s median age is around 39.8, and Japan’s is nearly 50^{[8] [9]}.

Table 3: Median Age by Country (2023)

In addition, India’s digital and fintech sectors are booming. With over 800 million internet users and a record number of digital transactions via UPI, India is quickly becoming a global digital leader.

Conclusion: A “Dead Economy”? Only If You Ignore the Data

India may have its challenges, but calling it a “dead economy” is not just misleading — it’s uninformed. The real story is of a country surging ahead, backed by numbers, people, and momentum. Trump may have made headlines, but India is making history.

Excerpt: India’s trade footprint in the global market continues to evolve rapidly, driven by its strategic exports in energy, electronics, and IT services, while mineral fuels and high-tech goods dominate its import landscape. A deep dive into 2023 trade data reveals how India is positioning itself as both a critical manufacturing hub and a growing consumer economy.

India’s Global Trade in 2023: Goods and Services at a Glance

India’s engagement with global trade spans a diverse portfolio, from oil exports to digital services. In 2023, the country’s total merchandise exports reached $431.4 billion, while imports stood significantly higher at $672.1 billion, reflecting India’s expanding consumption base. On the services front, India’s dominance in the global IT sector remained evident, with total service exports worth $309.4 billion against imports of $176.8 billion.

Top Commodities Exported by India

India’s top ten exported goods reflect a blend of natural resources, high-value industrial products, and pharmaceuticals. Leading the list are:

• Mineral fuels and oils – $89.3 billion (20.7%)
• Precious stones and metals – $33.4 billion (7.7%)
• Electrical machinery – $32.3 billion (7.5%)
• Machinery and mechanical appliances – $29.3 billion (6.8%)
• Pharmaceutical products – $21.3 billion (4.9%)

These exports position India as a key global supplier in energy, technology, and health sectors^[10].

Top Goods Exported by India in 2023

India’s Major Imports: A Strong Energy Dependency

India’s reliance on global energy markets is evident, with mineral fuels and oils topping its imports at a staggering $220.6 billion, accounting for nearly one-third of total merchandise imports.Other notable import categories include:

• Electrical machinery – $76.1 billion
• Precious stones and metals – $72.7 billion
• Machinery and mechanical appliances – $57.1 billion
• Organic chemicals – $27.3 billion

Top Goods Imported by India in 2023

India’s Services Export Strength: Powered by IT and Business Services

In 2022, India exported over $309 billion worth of services, spearheaded by the booming IT and business services sectors. The country’s global leadership in software and back-office operations is underscored by:

• Telecommunications, computer, and information services – $144.8 billion (46.8%)
• Other business services – $74.9 billion (24.2%)
• Transport and travel services – combined $58.9 billion (19%)

India’s Imported Services: Business and Logistics Take the Lead

Service imports into India, totaling $176.8 billion in 2022, were largely centered around professional services, global transport logistics, and tourism^[11].Key imported services include:

• Other business services – $57.3 billion (32.4%)
• Transport – $43.5 billion (24.6%)
• Travel – $25.9 billion (14.6%)

Top Services Imported by India in 2022

Trade Trends and Strategic Insights

India’s trade data reveal several underlying economic dynamics:

• Energy security remains a critical concern, with high dependence on imported fossil fuels.
• Export strength is shifting from traditional commodities to high-value services, particularly IT and pharmaceuticals.
• India’s role in the global electronics and machinery supply chain is growing on both export and import fronts.
• Inward tourism and logistics spending reflect India’s increasing global integration and rising middle-class consumption.

Conclusion: The Road Ahead for India’s Trade

India’s evolving trade profile highlights a maturing economy—one that is leveraging its digital strengths while tackling structural import dependencies, especially in energy. As India positions itself for greater self-reliance and global leadership, strategic trade policy and investment in key sectors like renewable energy, technology, and services will be vital.

Excerpt: The United Kingdom’s trade relationship with India has gained momentum, reaching £42.6 billion over the latest four quarters to Q4 2024. This article unpacks the latest figures on exports, imports, market share, foreign direct investment, and India’s broader economic trajectory, offering context on what these numbers mean for businesses and policymakers.

UK–India Trade Overview

In the four quarters ending Q4 2024, total UK–India trade stood at £42.6 billion, marking an 8.3% uptick (£3.3 billion) compared to the same period a year earlier ^[12]

• Overall trade ranking: 11th among the UK’s global partners.
• Exports: £17.1 billion (+5.8% or £945 million), ranking 12th in export destinations.
• Imports: £25.5 billion (+10.1% or £2.3 billion), ranking 11th among import sources.

Goods vs Services: Export and Import Composition

India has become a vital market for both UK goods and services. Over the latest year:

• Goods exports: £7.0 billion (41.1% of total goods exports), up 15.4% (£938 million).
• Services exports: £10.1 billion (58.9% of total services exports), up marginally by 0.07% (£7 million).
• Goods imports: £10.8 billion (42.3% of total goods imports), up 3.0% (£314 million).
• Services imports: £14.7 billion (57.7% of total services imports), up 15.9% (£2.0 billion).

UK Market Share in India

The UK has expanded its footprint in India’s trade landscape in 2023, with market share rising across all categories ^[13]

UK Market Share in Indian Trade (2023)

Foreign Direct Investment Flows

Investment ties reflect a two-way flow:

• UK outward FDI stock in India: £17.4 billion at end‑2023, down 13.1% (£2.6 billion) from 2022.
• UK inward FDI stock from India: £13.1 billion at end‑2023, up 28.5% (£2.9 billion).

This divergence underscores evolving investment strategies, with UK firms recalibrating their allocation even as Indian investors increase their UK presence ^[14]

India’s Economic Outlook

India’s robust growth trajectory is pivotal for future UK–India trade dynamics. The latest projections for India’s GDP show sustained expansion:

India GDP Growth and Per Capita Projections

India’s global GDP rank is moving up, from 5th place in 2023–2024 to an anticipated 4th by 2025, reflecting the country’s increasing economic heft ^[15]

Implications for UK Businesses

• Diversify supply chains to capitalize on growing services demand in India.
• Monitor FDI trends to leverage inbound and outbound investment opportunities.
• Align with India’s growth sectors—notably technology and consumer services—to sustain export momentum.

Complete data sets underpinning these analyses are available from the respective statistical agencies.