PTI New Delhi

With leading international agencies, including IMF, continuing to project India as the fastest-growing major economy in the world, analysts said that US President Donald Trump's description of India as a "dead economy" is "misplaced". India continues to be a hot-bed for foreign investment with several international giants looking at the country for setting up manufacturing base to Global Capability Centres (GCCs).  Also, Indian talent is most sought after particularly in the tech sector and has been a major exporter of services to countries, including the US.

A day after announcing 25 per cent tariffs on India, plus a 'penalty' for its trade with Russia, Trump in a social media post on Thursday said, "I don't care what India does with Russia. They can take their dead economies down together, for all I care." Consultancy firm EY India described Trump's comments against India as "quite misplaced" and said, in fact, the centre of gravity of the world economy is slowly shifting to the Global South for which India has placed itself in a leading role.

"On the other hand, the erstwhile developed economies are ageing fast and it is largely the contribution that Indian diaspora makes in these economies that they continue to show some positive growth," EY India Chief Policy Advisor DK Srivastava told PTI.

A big blow for gem and jewellery sector: Experts

"The US announcement of a sweeping 25% tariff on all Indian goods, along with vague penalties affecting strategic ties, is a deeply concerning development. The Indian gem and jewellery sector, in particular, stands to be severely impacted. The US is our single largest market, accounting for over USD 10 billion in exports, nearly 30% of our industry's total global trade," GJEPC Chairman Kirit Bhansali said in a statement.

Apparel exports to US may slow down

AEPC said that the announcement of an interim trade deal between the two countries would help to boost exports, Apparel Export Promotion Council (AEPC) said in a statement. The tariff of 25 per cent is higher than expected, but the industry should not be overly worried as long as Vietnam and Bangladesh tariffs are not revised downward from the current levels, AEPC Chairman Sudhir Sekhri said.

Increased costs for essential drugs in the US

Pharmaceuticals Export Promotion Council of India (Pharmexcil) on Thursday said President Trump's tariff plus unspecified penalty on all goods coming from India will result in increased costs for essential drugs in the US, ultimately harming consumers and healthcare systems in the country in the long term.