Shashi Tharoor on Rahul Gandhi’s 'Dead Economy' Remark: "He Has His Reasons"
In August 2025, Congress MP Shashi Tharoor addressed comments made by his party leader Rahul Gandhi, who endorsed US President Donald Trump’s characterization of the Indian economy as a "dead economy." While Rahul Gandhi openly supported Trump’s critique, attributing blame to the BJP government for economic mismanagement, Tharoor chose a more measured stance.
Tharoor’s Response to Rahul Gandhi’s Remark
Shashi Tharoor refrained from commenting directly on Rahul Gandhi’s endorsement, stating,
"I don't want to comment on what my party leader has said. He has his reasons for saying so."
Tharoor underlined the importance of the India-US strategic and economic relationship, pointing out that the US is one of India’s largest export markets with approximately $90 billion worth of goods exported annually.
He emphasized the need to support Indian trade negotiators in securing a fair deal amidst escalating tariff tensions, following Trump’s imposition of a 25% tariff on Indian goods and threat of additional penalties over oil imports from Russia.
Tharoor warned of the potential adverse impacts on India’s exports and economy if tariffs remain high, suggesting the importance of diversifying export markets while maintaining robust ties with the US.
Context of the Controversy
Donald Trump had called India a "dead economy" via his social media platform, coinciding with the announcement of punitive tariffs on Indian goods.
Rahul Gandhi, echoing Trump, stated,
"Everybody knows that the Indian economy is a dead economy. I am glad that President Trump has stated a fact." He accused the BJP government of destroying the economy to benefit corporate interests, particularly mentioning the Adani group.
The remark sparked heated debate within the Congress Party and Indian political discourse, exposing differences in tone and approach among Congress leaders.
Tharoor’s Economic Outlook
While acknowledging the challenges in India-US trade relations, Tharoor stressed the need for resilient diplomacy and economic pragmatism.
He noted the importance of balancing resistance to unreasonable foreign trade demands with cooperation aimed at benefiting India’s broader economic interests.
Frequently Asked Questions (FAQ) About Shashi Tharoor’s Reaction to Rahul Gandhi’s 'Dead Economy' Remark
Q1: What did Rahul Gandhi say about the Indian economy?
Rahul Gandhi endorsed Donald Trump’s description of India as a "dead economy" and blamed the BJP government for economic decline benefiting select corporate interests.
Q2: How did Shashi Tharoor respond to Rahul Gandhi's statement?
Tharoor avoided direct criticism or support, saying Rahul “has his reasons” for the remark and focusing on India’s economic partnership with the US.
Q3: Why is India-US trade important according to Tharoor?
The US is one of India’s largest export markets, with exports worth about $90 billion annually, making the relationship strategically and economically vital.
Q4: What concerns did Tharoor raise about US tariffs?
He warned that high tariffs and penalties imposed by the US could severely damage Indian exports and economic interests.
Q5: What is Tharoor’s stance on trade negotiations?
He urged support for Indian negotiators to achieve a fair deal, while also advocating diversification of export markets.
Q6: What was the political significance of these remarks?
The differing tones between Rahul Gandhi’s harsh criticism and Tharoor’s measured approach highlight internal debates within the Congress Party on handling economic issues and international relations.
Published on: August 3, 2025
Published by: PAVAN
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