On July 31, 2025, Congress leader and Lok Sabha Opposition Leader Rahul Gandhi backs controversy by endorsing U.S. President Donald Trump’s remark that India’s economy is “dead.” Speaking to reporters outside Parliament in New Delhi, Gandhi stated that Trump’s comment reflects a widely acknowledged truth, blaming the Bharatiya Janata Party (BJP) government for economic mismanagement. He attributed the downturn to policies like demonetization, a flawed Goods and Services Tax (GST), and favoritism toward industrialist Gautam Adani, alleging these have crippled small businesses, farmers, and youth employment prospects.
Rahul Gandhi Backs on Indian Economy
Trump’s statement, made via Truth Social, criticized India’s trade ties with Russia and high tariffs, announcing a 25% tariff on Indian imports effective August 1, 2025, alongside an unspecified penalty for Russia-related trade. Gandhi’s agreement with Trump drew sharp criticism from BJP leaders, with Amit Malviya calling it an insult to India’s aspirations, noting India’s status as the world’s fastest-growing major economy with a GDP of $4.19 trillion in 2025, per IMF data. Congress allies, including Shashi Tharoor and Shiv Sena’s Priyanka Chaturvedi, distanced themselves, emphasizing India’s economic resilience and rejecting Trump’s claims as arrogant.
Posts on X show polarized reactions, with some users accusing Gandhi of undermining national interests, while others highlight concerns over unemployment and MSME struggles, aligning with his critique. The Commerce Ministry responded to Trump’s tariffs, stating India is committed to fair trade negotiations to protect its farmers and entrepreneurs. Despite the political uproar, India’s trade with Russia has surged to $68.7 billion in FY25, driven by oil and fertilizer imports, though analysts warn Trump’s tariffs could dent GDP growth by 20–30 basis points in 2025–26.
This episode underscores deepening political divides in India and the complex interplay of domestic rhetoric with global trade tensions.
Published in SouthAsianDesk, August 1st, 2025
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