Shashi Tharoor Stresses Importance of India-US Trade Amid Rahul Gandhi’s Trump Remarks

Congress MP Shashi Tharoor on August 2 refused to elaborate on party leader Rahul Gandhi’s agreement with U.S. President Donald Trump’s comment that the Indian economy is a “dead economy.”

Tharoor said, “I don’t want to comment on what my party leader has said. He has his reasons for saying so.”

He stressed that his primary concern is the strategic and economic partnership with the U.S., noting that India exports nearly $90 billion in goods to the U.S. and cannot afford significant losses in trade.

Rahul Gandhi Voices Support for Trump’s Remark

On July 31, Gandhi appeared to back Trump’s criticism of India’s economy, declaring, “Everybody knows that the Indian economy is a dead economy… I am glad that President Trump has stated a fact.”

Gandhi accused the BJP government of prioritising the interests of billionaire Adani over the nation, and claimed, “The government has destroyed our economy, defence and foreign policy.”

Tharoor Urges Support for Trade Negotiators

Rather than echoing Gandhi’s comments, Tharoor urged support for Indian trade negotiators. He described U.S. tariffs as a potential “bargaining tactic” and called for flexibility in trade partnerships:

“We must support our negotiators to get a fair deal for India. If a good deal is not possible, we may have to walk away.” He added that India should seek stronger trade agreements with regions like the UK, EU, and Japan to offset any losses from the U.S.

Internal Party Tensions Highlighted

Tharoor’s remarks underscore growing tension between his views and the Congress leadership, especially after his public support for Operation Sindoor — a military operation responding to the Pahalgam terror attack.

He has consistently emphasised that “nation comes before party,” differing from the official party stance.

Tharoor’s appointment to lead the Operation Sindoor delegation to the U.S. — made without Congress endorsement — further deepened the rift. His acceptance of the role was viewed as a defiance of the party line.

Tariff Dispute Escalates India-US Relations

In late July, the U.S. announced a 25% tariff on Indian imports and threatened additional penalties over India’s oil purchases from Russia.

Trump intensified tensions further by stating, “I don’t care what India does with Russia. They can take their dead economies down together, for all I care.” In response to questions about Trump’s stance, Tharoor said, “No, not at all. That is not the case, and we all know it.”

Many Congress and Opposition coalition leaders distanced themselves from Gandhi’s endorsement of Trump’s views, rejecting the label that India’s economy is dead.

Strategic Imperatives in Trade Policy

Tharoor emphasised that India must not rely solely on U.S. trade. He highlighted existing FTAs with the UK and ongoing negotiations with the EU, noting potential with Japan and other partners.

“If we have a good agreement with the EU, Japan and other countries, we could make up for some of what we might lose in the U.S., but we cannot lose everything,” he said.

Broader Political Implications

His remarks follow widespread criticism of Trump’s comments by BJP leaders who accused Rahul Gandhi of undermining national interest.

The political exchanges reveal an internal Congress divide: while Gandhi adopts confrontational rhetoric, Tharoor favours a cautious and globally-minded approach.