A blistering remark by US President Donald Trump – calling India’s economy “dead” – has triggered a political storm in India, with senior Congress leader Rahul Gandhi seizing the opportunity to lash out at the Modi government.
“Everybody knows that Indian Economy is a dead economy. I am glad President Trump has stated a fact. Everyone knows this except the Prime Minister and the Finance Minster,” Gandhi told reporters outside Parliament Thursday. “Is there any confusion? The world knows this. BJP has destroyed the economy of India”.
#WATCH | Delhi: On the US President Trump’s dead economy remark, Lok Sabha LoP and Congress MP Rahul Gandhi says, “Yes, he is right, Everybody knows this except the Prime Minsiter and the Finance Minsiter. Everybody knows that the Indian economy is a dead economy. I am glad that… pic.twitter.com/n7UWXrgggW
— ANI (@ANI) July 31, 2025
On X, he sharpened the attack further, declaring “Modi killed it” while listing five reasons behind the economic decline.
THE INDIAN ECONOMY IS DEAD.
Modi killed it.
1. Adani-Modi partnership
2. Demonetisation and a flawed GST
3. Failed “Assemble in India”
4. MSMEs wiped out
5. Farmers crushedModi has destroyed the future of India’s youth because there are no jobs.
— Rahul Gandhi (@RahulGandhi) July 31, 2025
But Gandhi’s remarks split his own party. Congress MP Shashi Tharoor struck a more diplomatic note, telling reporters: “If America is completely unreasonable with its demands, we have to move elsewhere… We are not a totally export-dependent economy like China.”
#WATCH | Delhi | On trade negotiations between the US and India, Congress MP Shashi Tharoor says, “It is a challenging negotiation. We are negotiating with many countries. The US is not the only negotiation. We have ongoing negotiations with the EU, we already concluded a deal… pic.twitter.com/tl85WKiMjW
— ANI (@ANI) July 31, 2025
Senior Congress leader Rajeev Shukla dismissed Trump’s comment outright: “Trump is living in a delusion… The Indian economy is not dead.”
The BJP, quick to seize on Gandhi’s endorsement of Trump’s statement, accused him of damaging India’s global standing.
BJP MP Anurag Thakur retorted, “Rahul Gandhi’s job is only to oppose India. Anyone from around the world makes an anti-India statement, Rahul catches hold of it and starts speaking without thinking.”
BJP leader K Annamalai tweeted, contrasting Gandhi and Tharoor’s approaches, saying: “One spoke for India’s interest, and the other spoke in a tone that would please his offshore masters.”
I came across remarks by two Congress leaders on the same topic today. One spoke for India’s Interest, and the other spoke in a tone that would please his offshore masters.
When the world acknowledges India as the only bright spot on an otherwise dark horizon, here is the… pic.twitter.com/qejp39fAFF
— K.Annamalai (@annamalai_k) July 31, 2025
The divided comments come amid high-stakes trade talks between New Delhi and Washington. A day before the August 1 deadline set by the Trump administration, the US President imposed a 25 per cent tariff on Indian imports plus a penalty for India’s trade ties with Russia.
The Centre responded soon after, stating it had “taken note” of the tariffs and would act to protect its national interest.
“The Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK,” the government said in a statement.
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The United States and India have been discussing a trade deal for months, but no final agreement has been reached. Trump has been pressing for greater access for American goods to the Indian market and has often made similar demands in other trade negotiations.
