In the wake of escalating rhetoric surrounding U.S.–India trade tensions, senior Congress leader and Member of Parliament from Thiruvananthapuram, Shashi Tharoor, on Saturday offered a nuanced perspective, choosing not to directly engage with party colleague Rahul Gandhi’s controversial remarks, but instead highlighting the vital significance of India’s longstanding strategic and economic partnership with the United States.
Tharoor’s comments came shortly after U.S. President Donald Trump’s provocative assertion that India’s economy is “dead,” an accusation that was unusually echoed by Congress MP Rahul Gandhi, who claimed that the Bharatiya Janata Party (BJP) government had “murdered” the Indian economy. While the remark sparked a flurry of political reactions, Tharoor struck a more diplomatic tone.
“I don’t want to comment on what my party leader has said. He has his own reasons for saying it,” Tharoor remarked, when asked about Gandhi’s agreement with Trump’s controversial statement. “My concern is much more that our relationship with the US, as a strategic and economic partnership, is important for us.”
India–U.S. Trade Relationship: A Vital Pillar of Economic Engagement
Tharoor went on to stress that India’s trade with the United States is not only economically significant, but also crucial from a strategic foreign policy standpoint.
“We are exporting something like $90 billion worth of goods to the United States. That makes America one of our largest export markets,” he stated. “Some people downplay this by pointing out that it accounts for only 2% of our GDP, but that misses the point. In terms of our overall exports, the U.S. market is absolutely critical.”
The Congress MP emphasized that any substantial disruption in trade relations with Washington could deal a blow to several Indian industries, especially sectors like IT services, pharmaceuticals, textiles, and engineering goods, which are heavily reliant on American consumers.
On Tariffs and Trade Negotiations: “Support Our Negotiators”
Reacting to President Trump’s recent 25% tariff hike on Indian goods, Tharoor stood in firm support of Indian trade officials and negotiators. He urged the public and political parties alike to show unity and back the government’s trade negotiators in securing a fair and balanced agreement with Washington.
“When we look at the tariff question, we must wish our negotiators strength and courage. These are challenging times, and they need our support to strike a deal that safeguards India’s economic interests,” Tharoor said.
He also called for greater diversification of export markets, suggesting that India should not be overly reliant on one major trade partner.
“We should explore new bilateral and regional opportunities for exporting our goods. If some access to the U.S. market is lost, we must be prepared to compensate through alternative markets. That’s the only way to shield our exporters and workers from sudden shocks.”
Context: Trump’s Escalating Trade Rhetoric and Rahul Gandhi’s Approval
President Trump’s latest comment came via a post on Truth Social, where he said:
“India and Russia can take their dead economies down together, for all I care.”
His comments coincided with the announcement of steep 25% tariffs on Indian imports into the United States, starting August 1, 2025. The decision has triggered concern among Indian exporters, who now face tighter access to one of the world’s largest consumer markets.
In an unexpected political twist, Congress leader Rahul Gandhi agreed with Trump’s remark, using it as an opportunity to criticize the ruling BJP government’s economic performance.
“I don’t care what Trump said. The reality is that India’s economy is dead. And it has been murdered by the BJP government,” Gandhi told reporters, further fuelling a national debate over India’s economic trajectory.
Tharoor’s Diplomatic Balancing Act
While many in the Congress party may share Gandhi’s frustration with the government’s economic handling, Tharoor’s intervention signals a more measured and statesmanlike approach, especially in the context of sensitive international relations.
“Our priority must be to preserve and deepen the U.S.–India partnership,” he reiterated. “It is not only about trade. It is about shared democratic values, defense cooperation, innovation ecosystems, and people-to-people ties.”