Indian economy is 'dead' says Rahul Gandhi, backs Trump & claims 'everybody knows this fact'

Congress MP and Leader of Opposition in Lok Sabha Rahul Gandhi on Thursday backed US President Donald Trump's claim that 'India is a dead economy'.

Agreeing with the US President in the aftermath of the imposition of 25% tariffs on Indian exports by America, Gandhi said that 'everybody knows the fact' that India's economy is allegedly in shambles.

"Yes, he is right. I mean, everybody knows this except PM Modi and the Finance Minister. It is a dead economy. I am glad that the US President has stated facts... The entire world knows that BJP has ended the Indian economy to help Adani," Gandhi told reporters outside the Parliament.

Trump calls India and Russia ‘dead economies'

Donald Trump launched a scathing attack on India and Russia earlier on Thursday, describing both as “dead economies” and declaring he has little interest in maintaining trade ties with either nation.

His remarks came just hours after announcing a new 25% tariff on Indian goods, coupled with a penalty for what he called India’s continued strategic trade engagement with Russia.

Taking to Truth Social, Trump wrote: “I don’t care what India does with Russia. They can take their dead economies down together, for all I care.”
He further accused India of maintaining prohibitively high trade barriers: “We have done very little business with India, their Tariffs are too high, among the highest in the World.”

Also read: India, Russia can take their dead economies down together: Trump attacks New Delhi-Moscow ties amid US tariff move

Timing raises concerns over pressure tactics amid negotiations

Trump’s announcement comes just a day after New Delhi confirmed a U.S. trade delegation will visit on August 25 for the sixth round of negotiations on a proposed bilateral trade agreement.

The White House has not disclosed the scope of the penalty accompanying the 25% tariff, but officials said it specifically targets India’s deepening energy and defence trade with Russia.

Since the onset of the Ukraine war, India’s imports of Russian crude oil have surged from just 0.2% to nearly 35–40% of its total purchases, making it Russia’s second-largest oil customer after China. India has also continued acquiring advanced Russian weapons systems, ignoring Western sanctions.

In a previous statement, Trump accused India of having “the most strenuous and obnoxious non-monetary trade barriers of any country,” claiming these measures have long discouraged U.S. firms from entering the Indian market.

“India will therefore be paying a tariff of 25 per cent, plus a penalty for the above, starting on August first,” he said.

Bilateral trade between the two nations totalled $186 billion in 2024–25, with India enjoying a $44.4 billion surplus. While the U.S. has imposed lower tariffs on Vietnam (20%) and Malaysia (25%), it has hit Bangladesh (35%) and Thailand (36%) harder.

A baseline 10% duty on most Indian goods had already been in place since Trump’s April 2 order. The latest 25% tariff is expected to further escalate trade tensions.