New Delhi, July 31, 2025 : Congress MP and Leader of Opposition in the Lok Sabha, Rahul Gandhi, has endorsed US President Donald Trump’s scathing remark labelling India’s economy as “dead,” intensifying domestic debate on tariffs and Opposition’s approach to the issues concerning national interest. Rahul Gandhi’s comments come in the wake of Trump’s announcement on July 30, 2025, imposing a 25% tariff on Indian imports effective August 1, alongside a penalty for India’s continued trade with Russia amid the Ukraine conflict.
The tariff, targeting $87 billion in Indian exports like textiles, jewellery, and smartphones, has sparked a heated debate over India’s economic health and global trade standing.
In a fiery tweet, Gandhi blamed Prime Minister Narendra Modi for the economy’s woes, citing the Adani-Modi partnership, demonetisation, a flawed GST, the failure of “Assemble in India,” and the devastation of MSMEs and farmers. “Modi has destroyed the future of India’s youth because there are no jobs,” he wrote, adding in a statement, “I am glad that the US President has stated facts… The entire world knows that BJP has ended the Indian economy to help Adani.” Rahul Gandhi’s remarks align with Trump’s claim that India’s economy is faltering, a view he contrasts with Modi and Finance Minister Nirmala Sitharaman’s optimistic projections.
Trump’s tariff, affecting sectors like gems (30% US market share) and auto components, aims to address a $45.7 billion US trade deficit with India, which reached $190 billion in bilateral trade in 2024. The US seeks concessions, particularly in agriculture and dairy, aligning with Trump’s “America First” policy to curb deficits and Russia’s war funding. In the US, the tariff risks inflating consumer prices for apparel and electronics, with companies like Apple facing supply chain disruptions after shifting iPhone production to India. Estimates suggest $2.8 trillion in tariff revenue over 2026-2035, offset by $463 billion in economic losses.
In India, the government has responded cautiously, prioritising farmers, MSMEs, and entrepreneurs. Analysts warn of a 0.2-0.5% GDP reduction and job losses in export hubs like Gujarat and Tamil Nadu if the tariff persists. However, exemptions for pharmaceuticals and semiconductors offer some relief. India’s trade surplus with the US grew 16.6% to $41.1 billion in FY25, prompting calls for resilience and diversification to counter competitors like Vietnam. Public sentiment is divided, with critics slamming Modi’s diplomacy.
“The main question is, Trump has claimed 30-32 times that he did a ceasefire. He also said that 5 Indian jets have fallen. Trump now says that he will impose 25% tariffs. Why is PM Modi not able to give an answer? What is the actual reason? Who has the control in his hands?,” Rahul Gandhi ended his statement.
