While Donald Trump called India’s economy “dead,” Rahul Gandhi backed the statement, triggering sharp political and economic rebuttals amid rising global trade tensions.
A political storm has erupted in India after US presidential candidate and former President Donald Trump labeled the Indian economy as “dead” in a post on Truth Social. Congress MP Rahul Gandhi endorsed Trump’s assertion, saying, “The entire world knows the Indian economy is dead,” a remark that has been heavily criticized by the Bharatiya Janata Party (BJP). The comment comes amid Trump’s announcement of a 25% tariff on Indian goods, adding another layer of tension to Indo-US relations. While the government has not issued an official response to Trump’s economic remark, voices from across the political spectrum have reacted sharply.
Trump’s Statement and Tariff Decision
In a provocative post, Trump accused India of unfair trade practices:
“We have done very little business with India, their Tariffs are too high, among the highest in the world… They can take their dead economies down together, for all I care.”
The announcement followed Trump’s declaration of a 25% tariff on Indian goods, a decision that has rattled Indian exporters and policy analysts, especially in sectors like pharmaceuticals, textiles, and agriculture.
Rahul Gandhi’s Endorsement: A Controversial Move
Speaking outside Parliament, Rahul Gandhi said Trump “stated a fact” and accused the Modi government of ruining the economy.
“Everybody knows that the Indian economy is a dead economy. I’m glad that President Trump has stated a fact… Modi has destroyed the future of India’s youth because there are no jobs.”
He later posted on X:
“THE INDIAN ECONOMY IS DEAD. Modi killed it.”
Rahul listed factors such as demonetisation, the flawed implementation of GST, and crony capitalism as reasons for India’s economic “collapse.”
BJP’s Rebuttal: ‘Shameful, Misguided, and Misrepresentative’
The BJP launched a full-throated counterattack, branding Rahul’s remarks as “anti-national.”
- Amit Malviya, BJP IT Cell head, called Gandhi’s comments a “shameful insult” to hardworking Indians and pointed to India’s strong GDP and export data.
- Sambit Patra noted that India’s inflation is at a 6-year low, while PMI (Purchasing Managers’ Index) is at a 17.5-year high.
- Anurag Thakur alleged that Rahul “grabs every anti-India statement” for political mileage.
- Annamalai contrasted Gandhi’s tone with Congress MP Shashi Tharoor, who urged mature negotiation with the US while maintaining national dignity.
Data Check: Is the Indian Economy Really ‘Dead’?
Economic Indicators (FY 2024-25):
| Metric | Status (as per July 2025) |
|---|---|
| GDP Growth (IMF Projection) | 6.9% |
| Inflation Rate | 4.2% (6-year low) |
| Unemployment Rate | 7.4% |
| PMI (June 2025) | 58.9 (17.5-year high) |
| World Bank Assessment | “Standout growth story” of the decade |
| Global Ranking | 5th largest economy globally |
India continues to be the fastest-growing major economy in the world, according to both the IMF and World Bank, with resilient post-pandemic recovery and robust domestic consumption. Exporters, however, are concerned about the fallout from Trump’s tariff decision.
Opposition Within Congress: Diverging Voices
While Gandhi and his allies doubled down on the economic critique, senior leaders offered more restrained positions:
- Mallikarjun Kharge called Trump’s comment “baseless” but warned about the economic impact of US tariffs.
- Shashi Tharoor advised India to stand firm in negotiations and not yield to unreasonable demands.
- Karti Chidambaram and Rajeev Shukla urged calm diplomacy and rejected the notion of a “dead” economy.
Strategic Context: A Clash of Rhetoric and Reality
Rahul Gandhi’s endorsement of a foreign leader’s critical remark—especially amid active Indo-US trade tensions—marks a rare alignment that many analysts call politically risky. While criticism of government policy is valid in any democracy, echoing derogatory foreign characterizations can be perceived as undermining national image.
The BJP’s counterattack reflects not only political reflex but also India’s sensitivity to foreign assessments of its economic trajectory. With elections on the horizon and India seeking to fortify its global partnerships, this episode may influence both domestic discourse and diplomatic tone.
While Donald Trump’s “dead economy” remark appears to be part of a broader political and economic posturing strategy, Rahul Gandhi’s unfiltered endorsement has added a new dimension to India’s political battlefield. As the Modi government remains silent on Trump’s insult, the battle over India’s economic narrative is unfolding not just on social media, but in global policy and trade corridors
