Zoho founder Sridhar Vembu has made headlines with his bold response to critics of India’s economic policies, declaring “We will show them what a ‘dead economy’ looks like” in a recent social media post. The statement, posted on September 4, 2025, came as a pointed rebuttal to US President Donald Trump’s controversial characterization of India and Russia as “dead economies” during previous international discussions.
Vembu’s tweet was specifically timed to coincide with his endorsement of India’s radical GST reforms, which were approved by the GST Council chaired by Finance Minister Nirmala Sitharaman. The Zoho founder praised the government’s decision to overhaul the indirect tax regime, calling it “exactly the right mix” of policies needed to stimulate economic growth and domestic production.
In his post, Vembu stated, “Cutting taxes to stimulate domestic demand, and encouraging investment in domestic production so the increased domestic demand creates employment – exactly the right mix. We could afford this mix precisely because our government has been generally prudent.” His confidence in India’s economic trajectory was evident as he concluded with the provocative promise to demonstrate what a truly vibrant economy looks like.
The GST reforms that prompted Vembu’s enthusiastic response represent a significant simplification of India’s tax structure. Effective September 22, 2025, the new system operates under a streamlined two-slab structure of 5% and 18%, eliminating the existing 12% and 28% brackets. A special 40% levy has been reserved for luxury and sin goods, while essential items including healthcare and education products have seen substantial rate reductions. Personal health and life insurance policies, previously taxed at 18%, have been completely exempted from GST.
Vembu was not alone in his praise for the reforms. Kotak AMC MD Nilesh Shah described the changes as “ek teer kai nishaan” or one arrow achieving multiple goals, noting that the GST rationalization would lower inflation, increase growth, boost consumer sentiment, and improve ease of doing business. The estimated fiscal cost of Rs 48,000 crore was deemed manageable by industry experts, who emphasized the reform’s potential to offset adverse effects from US tariffs.
The broader context of Vembu’s statement reflects India’s response to mounting international trade pressures, particularly the steep 50% tariffs imposed by the United States on Indian exports. Economists estimate that the GST rationalization could add up to 0.5 percentage points to India’s GDP growth by its second year, effectively helping to neutralize the economic impact of US trade duties.
