India on track to be world's 3rd largest economy, says FM Sitharaman; hits back at Trump's 'dead economy' jibe

Finance Minister Nirmala Sitharaman on Tuesday said India is firmly on course to becoming the world’s third-largest economy, asserting that the country “stands tall and distinct because of its economic strength.”

Taking a dig at US President Donald Trump’s recent remark calling India a “dead economy,” Sitharaman said, “Even if we are bullied internationally, we should have faith that we are achieving our goals and not get swayed by whoever says we are dead or alive. Yes, I am referring to that remark.”

She highlighted that India’s rapid economic transition is evident as it moves “fast toward becoming the third-largest economy,” driven by widespread economic empowerment and structural resilience.

Addressing a gathering of economists, Sitharaman cautioned that India is at an inflection point shaped by technological disruption, artificial intelligence, and sustainability challenges. “Without technology, all land, labour, and capital are going to go away,” she said, adding that AI is transforming manufacturing models but also raising questions about employment.

The Finance Minister underscored the importance of data-driven policymaking and deeper India-centric research on climate finance, employment elasticity, fiscal federalism, and GST reforms.

She said significant work has gone into drafting the new Income Tax Act — including efforts to raise the exemption limit to ₹12 lakh — and modernising customs operations.

Sitharaman urged young economists to ensure India’s perspectives feature prominently in global debates, noting that “globalisation is literally in retreat” and that global growth may face headwinds over the next two decades.

She also noted that India will chair the BRICS grouping next year, a key opportunity to project India’s economic voice globally.