Trump calls Indian economy 'dead'; Rahul Gandhi echoes criticism, slams Modi government

US President Donald Trump has described the Indian economy as “dead,” accusing the country of strengthening ties while facing economic challenges. Trump made the remark while announcing fresh tariffs against India. He also described the Russian economy in the same way.

“I don't care what India does with Russia. They can take their dead economies down together, for all I care,” he said in a social media post. He also declared a 25 per cent tariff on all goods imported from India starting August 1, along with an unspecified penalty for New Delhi’s ongoing trade with Russia, particularly crude oil and military purchases.

“We have done very little business with India, their tariffs are too high—among the highest in the world,” Trump said, adding that India has imposed "strenuous and obnoxious" non-monetary trade barriers.

The penalty comes as India has emerged as one of the largest importers of Russian crude oil since the Ukraine war, increasing its share from just 0.2 per cent pre-war to nearly 40 per cent now. India is also the first country to face US trade penalties linked to Russian imports.

Trump’s remarks triggered a political storm in India, with Rahul Gandhi launching a scathing attack on the Modi government, stating that “everyone except the prime minister and the finance minister knows the Indian economy is dead.” “He is right. Everybody knows this except the PM and the FM,” Gandhi told reporters at the Parliament complex. “I am glad that President Trump has stated a fact.”

Gandhi also alleged that the government has destroyed India’s economic, defence, and foreign policies, and accused the BJP of serving the interests of industrialist Gautam Adani at the cost of small businesses and the general public. “They are running the country to the ground,” he said.

Responding to questions about the proposed India–US trade deal, Gandhi claimed that Trump would dictate the terms of the agreement and Modi would comply. “Modi will do what Trump tells him to do,” he remarked.

The Congress MP also criticised the government's foreign policy, citing the US’s growing engagement with Pakistan and the lack of international condemnation against it despite recent terror attacks. He questioned why Modi failed to address Trump’s remarks or China’s increasing assertiveness in his recent Lok Sabha speech.

Later, Gandhi took to X, posting, "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 crushed." The BJP, in turn, condemned Gandhi’s remarks as “shameful,” accusing him of echoing anti-India sentiments and insulting the aspirations of the Indian people.
(With PTI Inputs)