When Donald Trump called India’s economy a “dead economy“, the internet exploded. While some rushed to slam the US President and defend the country, others offered measured and fact-based responses. One such reaction came from Akash Shrivastava, a financial influencer and founder of Wisdom Hatch, where he broke down the real issues that according to him are holding back India’s economic progress, without getting emotional.
Shrivastava’s post implied that calling India a “dead economy” may sound harsh, but there’s a reason why such criticism finds its way. “Dead economy: an economy for top 1%,” he said in a post on X (formerly twitter), listing several data-backed points to explain what’s really going on.
Growth is not as strong as it seems
Shrivastava said that India is currently growing at around 6.5%, which is an “extremely slow growth rate”. The reason behind this is that India’s economy is valued at about $4 trillion base, which is nearly eight times smaller than the US. He further added that India’s per capita income is 31 times lower than that of the US. Shrivastava pointed out that when China was at a similar economic level as India, it grew in double digits for over a decade.
Disposable income per person
India ranks 140th in the world when it comes to disposable income per person, with an average of just $3,000 per year. “We have a huge population, but very few can afford high-quality things,” Shrivastava explained. This limits growth in consumer-driven sectors.
Heavy taxes discourage aspiration
Because most Indians can’t afford luxury goods as the government adds luxury taxes on even basic things like air conditioners, Shrivastava said that this discourages people even further. This discouragement leads many with talent and money to leave the country. “When people witness such stupidity, anyone who can leave, leaves,” he said.
India tops in millionaire migration
Shrivastava claims that India ranks number one in net millionaire migration. That means a larger share of rich Indians are leaving the country than in any other nation. In 2024, this number was the highest, if seen globally.
India leads in remittances, too
India also ranks number 1 in remittances (money sent home by Indians working abroad). While this shows Indians are hardworking, Shrivastava questions if it’s really a sign of success, or simply a reflection of people leaving for better opportunities.
What we really need: Spending on basics
Shrivastava then went on to say that to truly grow, India needs to invest more in education, healthcare, and innovation. “Our spending in these areas is still below global averages,” he noted.
Broken incentives and leadership
Shrivastava also highlighted a deep-rooted problem which is incentives. He highlighted that government officials send their children to private schools while public schools suffer. He added that politicians who are actually working on creating better economic policies often change their kids’ citizenships. Meanwhile, much of the media and public are busy spreading WhatsApp forwards or chasing feel-good slogans like the $40 trillion dream, without questioning reality.
Shrivastava ended the post urging Indians to take a closer look at the problems and plan long-term solutions. “Taking a hard look at where we can improve is better than getting triggered by what a white dude said,” he concluded.