Rahul Gandhi says Trump right on making 'dead economy' remark about India

Rahul Gandhi courted controversy on Thursday (July 31), saying that US President Donald Trump was right in stating that the Indian economy is a “dead economy”, alleging that the BJP has crippled the Indian economy to benefit the Adani Group.

"Yes, he is right. Everybody knows this except the Prime Minister and the Finance Minister. I am glad that President Trump has stated a fact. The whole world knows that the BJP has finished the Indian economy to help Adani", Rahul told reporters outside Parliament.

Explaining his "Trump has stated a fact" remark, Rahul said, "The government has destroyed our economic policy, the government has destroyed our defence policy, has destroyed our foreign policy; they are running this country into the ground... the prime minister works for only one person: Adani. All small businesses have been demolished. You wait and see, this deal will happen, and Trump will define how this deal happens, and Modi will do exactly what Trump asks."

Also Read: Trump slams India-Russia ties; says 'they can take their dead economies down together'

'Modi killed it'

"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. Modi has destroyed the future of India’s youth because there are no jobs," Rahul also stated in a post on X.

The Leader of the Opposition in the Lok Sabha on Wednesday targeted Prime Minister Narendra Modi, saying he was refusing to “unequivocally deny” Trump’s claims on mediating a ceasefire between India and Pakistan. Rahul said that the Prime Minister was on a “very weak wicket” and has much to cover up. Rahul also said Modi was unable to directly refute Trump’s claims because if he did so, the US President would have laid bare the truth.

Also Read: Trump signs oil deal with Pakistan, says ‘they may sell to India some day’

What Trump said

The comments made by the Leader of the Opposition in the Lok Sabha came hours after US President Donald Trump once again mounted a sharp attack on India and Russia for their close ties and said that the two countries can take their "dead economies down together".

"I don't care what India does with Russia. They can take their dead economies down together, for all I care," he said.

"We have done very little business with India; their tariffs are too high, among the highest in the world," added Trump.

Also Read: Why India should stand up to Trump, emerge a better economy

Trump's tariff announcement

The US President on Wednesday made a surprise announcement, slapping a 25 per cent tariff on all goods coming from India starting August 1. Trump further stated that India would face an unspecified penalty for its large-scale buying of Russian weapons and oil.

The announcement came a day after Indian officials said that a US trade team would visit from August 25 to negotiate a trade deal.

Trump’s move appears to be a pressure tactic to make India agree to the US’s demands in relation to the proposed trade deal between the countries. Recently, the US has struck favourable trade deals with major partners like Japan, the UK and the European Union.

The penalty was announced as India has made large purchases of oil and military equipment from Russia. India is the first country to face a penalty for Russian imports, reported PTI.

There has been a sharp increase in India’s purchase of crude oil from Russia ever since the Russia-Ukraine war started. While the figure stood at 0.2 per cent of total oil purchases made by India before the start of the Russia-Ukraine war, it has shot up to 35-40 per cent after the war started.

(With agency inputs)