Congress MP Rahul Gandhi amplified U.S. President Donald Trump’s claim that India is a “dead economy”, stating: “Everybody knows this except the Prime Minister and the Finance Minister” at the Parliament House on July 31. Gandhi blamed the current government, citing demonetisation, flawed GST, MSME collapse, and agricultural distress, and welcomed Trump’s statement as validation of economic failure.

However, his stance immediately caused a schism within his own party. Shashi Tharoor, known for his diplomatic acumen, dismissed Trump's assertion and emphasized India’s robust economy and diversified markets. He warned that if U.S. trade terms proved unreasonable, India could simply walk away, showcasing domestic resilience and negotiating strength. Rajiv Shukla also strongly rejected the “dead” label, highlighting India’s legacy of economic reforms under P.V. Narasimha Rao, Manmohan Singh, and Atal Bihari Vajpayee, and called Trump misguided.

Priyanka Chaturvedi, Shiv Sena (UBT) MP and Congress ally, added that such a claim could only stem from arrogance or ignorance, noting India remains among the world’s fastest-growing economies.