Indian Minister Rejects Biden's 'Xenophobic' Remarks on Economy

Indian foreign, minister Subrahmanyam Jaishankar has strongly rejected US President Joe Biden's comments characterizing India as "xenophobic" and claiming it is hindering the country's economic growth. Jaishankar asserted that India's economy "is not faltering" and emphasized the nation's historically welcoming approach to people in need.

Why this matters: The disagreement between the two leaders highlights the differing approaches to immigration and its impact on economic growth, with significant implications for the global economy. As the world's two largest democracies, the US and India's contrasting perspectives on this issue could have far-reaching consequences for international relations and economic policies.

In response to Biden's remarks, Jaishankar stated, "That's why we have the CAA (Citizenship Amendment Act), which is to open up doors for people who are in trouble ... I think we should be open to people who have the need to come to India, who have a claim to come to India." The CAA allows immigrants who have fled persecution from neighboring countries to become Indian citizens.

President Biden made the controversial comments earlier this week at a fundraising event for his 2024 re-election campaign. He argued that migration has been beneficial for the US economy, stating, "One of the reasons why our economy's growing is because of you and many others. Why? Because we welcome immigrants."

The disagreement comes as the International Monetary Fund (IMF) has forecast slower growth in 2024 for Asia's three largest economies, including India. However, the IMF also projects the US economy will grow 2.7% in 2024, slightly faster than its 2.5% rate last year. Many economists attribute the positive US outlook partly to migrants expanding the country's labor force.

Minister Jaishankar's strong rebuttal of President Biden's remarks underscores the sensitivity around the issue of immigration and its perceived impact on India's economy. As the world's two largest democracies navigate their differences, the exchange highlights the complex dynamics and contrasting perspectives that shape the US-India relationship.

Key Takeaways

• India's Foreign Minister rejects US President Biden's "xenophobic" label.
• Biden claims India's immigration policies hinder economic growth.
• India's CAA allows persecuted immigrants from neighboring countries to become citizens.
• IMF forecasts slower growth for India's economy in 2024, but faster growth for the US.
• The disagreement highlights differing approaches to immigration and its impact on economic growth.