Congress Fissure: Shashi Tharoor Publicly Diverges with Rahul Gandhi Over Trump’s “Dead Economy” Remark

New Delhi, August 3, 2025 — A high‑profile disagreement has emerged within the Congress party after Rahul Gandhi, the Leader of the Opposition in the Lok Sabha, endorsed former U.S. President Donald Trump's assertion that India is a “dead economy.” In contrast, Congress MP Shashi Tharoor openly rejected the claim and distanced himself from Gandhi's stance, deepening a growing narrative of internal diversity within the party.

❝Rahul Gandhi’s Support for Trump’s "Dead Economy" Claim

On July 31, Rahul Gandhi echoed Donald Trump's controversial remarks, stating, “Yes, he is right… everybody knows that the Indian economy is a dead economy… I am glad that President Trump has stated a fact.” He blamed the BJP government for undermining the economy—alleging it served the interests of crony capitalists like Gautam Adani YouTube+15The Hans India+15Reddit+15Hindustan Times+4Business Today+4The Times of India+4.

❝Tharoor Breaks Ranks

Responding to questions on August 1, Shashi Tharoor firmly stated:
“I don’t want to comment on what my party leader has said. He has his own reasons for saying so… this is not the case, and we all know it” Business Today+5India Today+5www.ndtv.com+5.

While not criticizing Gandhi directly, Tharoor emphasised that America remains a critical trade partner for India—accounting for exports worth about USD 90 billion. He urged support for Indian negotiators facing escalating barriers, including proposed 25 percent tariffs, calling it a broader negotiation strategy rather than a definitive judgment on Indian economic strength The Washington Post+4India Today+4The Times of India+4.

Context: Reuters & Other Congress Voices

Other senior Congress figures have also voiced disagreement with the “dead economy” label. MP Rajeev Shukla described Trump’s statement as incorrect, reinforcing that India’s economic resilience remains intact and robust. Analysts note that these contrasting views highlight internal tensions over economic messaging at a critical juncture pre-2025 general elections The Economic Times+15The Hans India+15The Times of India+15.

Meanwhile, the PMO and government leaders have countered the "dead economy" narrative with data pointing to strong GDP growth, rising exports, and steps to boost domestic manufacturing—a direct rebuttal to Trump's and indirectly Gandhi's remarks Navbharat TimesThe Washington Post.

What This Means for Congress

Tharoor’s dissent raises questions about Congress’s internal coherence. His prior divergence on Operation Sindoor, where he prioritized national interest over party uniformity, added to speculation about ideological fault lines. Critics argue that such high-profile deviations may project a lack of message discipline at a politically sensitive time The Economic Times+3Business Today+3The Hans India+3.

However, supporters contend that these differences reflect healthy internal debate rather than disunity, and evidence a space for dissenting voices within a democratic framework.

Public and Political Reactions

The contrasting statements from Gandhi and Tharoor have sparked debate across media and public discourse. While Rahul Gandhi’s critics view his alignment with Trump's criticism as political opportunism, supporters argue it spotlights the economic frustrations across population segments.

On the other hand, Tharoor has been praised by commentators for standing up to safeguard India's economic reputation and prioritizing long-term trade interests over short-term political posturing.

Bottom Line

The exchange between Rahul Gandhi and Shashi Tharoor over Trump’s “dead economy” remark lays bare an ideological divide within Congress—not just on messaging, but on economics and foreign relations. As India navigates tariff threats, diplomatic friction, and preparations for upcoming elections, Congress will face pressure to present a unified economic narrative. For now, Tharoor’s stance signals that internal debate within the party is far from settled.