‘Dead Economy’ Remark: Rahul Gandhi Backs Trump, But Congress Leaders Differ | Politics News

Last Updated:July 31, 2025, 17:24 IST

Rahul Gandhi criticised PM Modi’s government, agreeing with Trump’s “dead economy” remark. Congress leaders Tharoor and Shukla disagreed, defending India’s economy.

Rahul Gandhi speaking in Lok Sabha. (Sansad TV)

Lok Sabha Leader of Opposition and Congress leader Rahul Gandhi on Thursday latched on to US President Donald Trump’s 25% tariffs imposition on India and “dead economy” remark to slam Prime Minister Narendra Modi-led government.

He lashed out at the government saying that the Republican leader is right in saying that the Indian economy is “dead”.

Read More: ‘Don’t Buckle Under Pressure’: After Trump’s Tariffs, Tharoor Says India Must Negotiate Hard

However, the Leader of the Opposition’s criticism of the government unexpectedly has backfired, with his party colleagues and allies taking an opposite stand.

What Rahul Gandhi Said?

The Congress MP questioned the Prime Minister over 25% tariff imposed on Indian goods by the US.

When asked to comment on Trump’s dead economy remark, Rahul Gandhi said that he agreed with the US President. “Yes, he is right. Everybody knows this except the Prime Minister and the Finance Minister. Everybody knows that the Indian economy is a dead economy. I am glad that President Trump has stated a fact… The entire world knows that the Indian economy is a dead economy. BJP has finished the economy to help Adani…” Gandhi said.

Gandhi further alleged that the BJP government has destroyed India’s economic, defence and foreign policy. “PM Modi works only for one person- Adani. This (India-US trade) deal will take place, and PM Modi will do exactly what Trump says,” he said.

“Foreign Minister gives a speech and says that we have a genius foreign policy. On one hand, America is abusing you; on the other hand, China is behind you. When you send your delegation to the world, no country condemns Pakistan. How are they running this country? There is total confusion… He (PM Modi in his speech) did not take the name of Trump, China… The military chief of Pakistan who did this Pahalgam attack, President Trump is having lunch with him, and they are saying we had a huge success,” he added.

Shashi Tharoor’s Different Stance From Gandhi

Meanwhile, senior Congress leader and Thrivananthapurm MP Shashi Tharoor, whose pro-Modi government remarks on the Pahalgam terror attack and Operation Sindoor have drawn snubs from the Congress leadership, took a different stand from Gandhi and said that the ongoing trade talks between the US and India are “challenging”.

Read More: ‘Insult To Aspirations’: BJP Vs Rahul Gandhi In New Slugfest Over Trump’s ‘Dead Economy’ Jibe

“We have ongoing negotiations with the EU, we already concluded a deal with the UK, and we are talking with other countries also. If we can’t compete in America, we may have to diversify our markets outside of America. We are not out of options,” he said as quoted by news agency ANI.

“If America is completely unreasonable with its demands, we have to move elsewhere. That is the strength of India; we are not a totally export-dependent economy like China. We have a good and strong domestic market. We must give strong support to our negotiators to find the best deal possible. If a good deal is not possible, we may have to walk away…” he added.

Tharoor further said India must not “buckle under” and negotiate hard with the United States on trade.

In a column for NDTV, Tharoor strongly criticised Trump’s remarks on India’s trade and foreign policy. He argued that Trump’s comments reflect a transactional and oversimplified worldview, where trade deficits are treated as personal insults and independent foreign policies are seen as threats. Tharoor has rejected Trump’s complaints about Indian tariffs and trade barriers, calling them tired arguments that ignore the economic realities of developing nations like India.

What Rajiv Shukla Said?

Congress leader and Rajya Sabha MP Rajiv Shukla said that Trump’s statement is “completely wrong”.

“The Indian economy is not dead. Economic reforms were made when PV Narasimha Rao and Manmohan Singh were there. Atal Bihari Vajpayee took those reforms forward. Manmohan Singh strengthened it in the 10 years. The current government has also worked on it. Our economic condition is not at all weak. If someone claims they can finish us economically, it’s likely due to a misunderstanding. Trump is living in a delusion. Imposing tariffs is wrong. Every nation has the right to trade with the nation it wants. Restricting them, speaking against the BRICS, speaking against trade and import from Russia, this is not right…” he told news agency ANI.

Priyanka Chaturvedi Says India’s Economy Is In Top 5

Shiv Sena (UBT) Rajya Sabha MP Priyanka Chaturvedi slammed the US President for his arrogance and said that there is enough data to know that the Indian economy is among the top five in the world.

“Not that one needs to say it there’s enough legitimate data available to know that Indian economy is in the top 5 of the world and one of the fastest growing economies. Calling it a dead economy can only come from a position of arrogance or ignorance. Thank you for your attention to this matter!,” she said in a post on X.

BJP Hits Back At Rahul Gandhi

BJP’s IT Cell chief Amit Malviya said Rahul Gandhi’s constant attempts to belittle India’s economic rise are not mere “political jabs” but they’re direct insults to the 140 crore Indians working hard to build a better future.

Malviya pointed out that key economic indicators showed robust India’s growth, with inflation at a 6-year low, tractor retail sales up 8.7% in June, three-wheeler production rising 8.6%, air cargo increasing by 8.1% and port cargo by 5.6%. Additionally, steel consumption grew 7.9%, renewable electricity generation surged 18.2%, crude steel rose 12.2%, finished steel by 12.5%, tractor production climbed 9.8%, cement production was up 7%, and capital goods output (IIP) jumped 14.1% in May 2025.

Trump’s 25% Tariff Move

Earlier on Wednesday, the US President Trump announced to impose a 25 per cent tariff on all goods coming from India starting August 1, plus an unspecified penalty for buying Russian crude oil and military equipment.

In a post on his social media platform Truth Social, Trump cited India’s high tariffs, stringent non-monetary trade barriers and continued military and energy ties with Russia as the basis for the move.

“India is our friend, but we have… done relatively little business with them because their tariffs are far too high… and they have the most strenuous and obnoxious non‑monetary trade barriers of any country,” Donald Trump wrote.

He further criticised India’s defense and energy relationship with Russia, saying, “They have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE- ALL THINGS NOT GOOD!”

“INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST,” he concluded.

Later, he criticised India’s trade policies and its ties with Russia. In his post, Trump dismissed concerns over India’s relationship with Moscow, stating, “I don’t care what India does with Russia. They can take their dead economies down together, for all I care.”

India’s Response

The government on Wednesday said it is studying the implications of Trump’s announcement to impose 25 per cent tariffs on Indian goods, along with a penalty from August 1.

“The Government has taken note of a statement by the US President on bilateral trade. The Government is studying its implications,” an official statement said.

(With inputs from agencies)

Shobhit Gupta

Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben…Read More

Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben… Read More

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