Donald Trump, former president of the United States, created a furor in India when he called its economy a “dead economy” in light of trade ties with Russia and the recent tariff wars. Congress leader Rahul Gandhi backed him on the streets outside Parliament, saying, “Everyone knows Indian economy is a dead economy … except for the Prime Minister and the Finance Minister.” He has also said that the Modi government has “destroyed the economy to help Adani.” Further indications were that trade agreements may be made in line with Trump-ordained conditions in the future.
Speaking at a rally in Varanasi, Prime Minister Modi emphasized the value of economic independence and reaffirmed his government’s support for small businesses, farmers, and young people. His comments followed Trump’s announcement of a 25% tariff on Indian imports and his threat of more economic sanctions due to India’s ongoing trading with Russia.
“A climate of worldwide instability prevails. Every nation is concentrating on its own interests. In order to protect its economic interests, India must remain vigilant as it is poised to become the world’s third largest economy, the Prime Minister stated.
“Those who want the best for the country and want to see India as the third biggest economy in the world, be it any political party, should leave their differences aside and instill a resolution for ‘swadeshi’ products,” he added.
As a result of this endorsement, friction occurred within the Congress party. Senior MP Rajeev Shukla, meanwhile, rebutted Trump’s statement as baseless and warned against endorsing foreign views. Shashi Tharoor also refuted the issue in public, saying India remained one of the fastest major economies growing.
Government rebuttal: Resilience and growth story of India.
Union Commerce Minister Piyush Goyal in Parliament promptly countered Trump’s remarks, stating India’s headlong rush to become the third-largest economy in the world. He went on to say that there would be no compromises in India while dealing with the U.S. on bilateral trade issues, given the current rise in new tariff pressures.
Prime Minister Narendra Modi weighed into the matter at a rally, declaring that India is “end route to becoming the 3rd-largest economy in the world.” He demanded national support on the direction of the economic agenda and urged advocacy for local industry and youth employment as central to protecting sovereignty and prosperity.
Modi laid the groundwork and officially opened ₹2,200 crore worth of infrastructure projects in Varanasi earlier in the day. As part of continuous efforts to upgrade the constituency he has represented since 2014, these included the construction of railway overbridges, the widening and reinforcement of important highways, and enhancements to both rural and urban transportation corridors.
