India's Leader of the Opposition Rahul Gandhi on Thursday reaffirmed US President Donald Trump’s assertion that the Indian economy is “dead”, sharply criticising the Narendra Modi administration's approach to economic, defense, and foreign policies.

 

 

While addressing reporters outside parliament, Gandhi stated, “He [Trump] is correct. Everyone understands that the Indian economy is a dead economy, apart from the Prime Minister and the Finance Minister.” He accused the BJP of undermining the nation's economy “to assist Adani,” referencing businessman Gautam Adani. Gandhi further questioned India’s lack of action on US tariffs. “Trump has now announced that he will impose 25 percent tariffs (along with a penalty for purchasing Russian oil and weapons). Why can't PM Modi provide a response? What is the true reason? Who holds power” he questioned. 

 

 

Donald Trump imposed a 25 percent tariff on Indian imports, set to take effect from August 1. The US president associated his decision with India’s persistent trade ties with Russia and its defense collaboration. “I don’t mind what India does with Russia. They can suffer together with their dead economies, for all I care,” Trump remarked on Truth Social, signalling a marked departure from the usual cordial relations between the two countries. In response, the Modi administration stated it “will take all steps necessary to secure our national interest.”

 

 

Later, Gandhi elaborated on his criticisms in a post on X (formerly Twitter), stating: “THE INDIAN ECONOMY IS DEAD. Modi killed it.” He outlined five reasons for his statement: the Adani-Modi alliance, demonetization, a problematic GST rollout, the failure of the “Assemble in India” initiative, and the ongoing crisis affecting farmers.

 

 

Though the post did not elaborate on the points, they echo themes Gandhi has previously discussed. He has frequently accused the government of favoring Adani through policy choices. Regarding demonetization and GST, he has held the government responsible for destabilizing small enterprises. Gandhi has criticized Make in India as a failed strategy, claiming it resulted in greater reliance on imports. He has also underscored the effects of policy changes on MSMEs and farmers, citing unemployment and increasing debt levels.

 

 

Meanwhile in Moscow, former Russian President Dmitry Medvedev dismissed Trump’s comments as a “nervous reaction,” asserting that Russia would maintain its current path despite US alerts.