Washington/New Delhi, Jul 31 (PTI) US President Donald Trump has called India a "dead economy" sparking a political firestorm in India, hours after he announced a 25 per cent tariffs on import of Indian goods along with an unspecified "penalty" for buying "vast majority" of Russian military equipment and crude oil.

As India analysed the possible impact of the 25 per cent tariffs announced in Washington yesterday, Trump targeted both India and Russia, saying they can take their "dead economies down together", in a fresh attack for their close trade ties.

In the backdrop of Trump's "dead economy" barb at India, Commerce Minister Piyush Goyal told Parliament on Thursday that India is the world's fastest-growing major economy and widely expected to be the "third largest economy" in a few years. Goyal also said India will take all necessary steps to safeguard and promote national interest and that the implications of the US tariffs are being examined.

But the remark by Trump on India was echoed by Congress leader Rahul Gandhi who said the President has stated a "fact", prompting a strong condemnation from the BJP.

The US president's diatribe came after he announced 25 per cent tariffs against India from August 1, along with an unspecified "penalty" to punish New Delhi for continuing to procure crude oil from Russia notwithstanding the Western sanctions. Russia remained India's top oil supplier in the last few months.

"I don't care what India does with Russia. They can take their dead economies down together, for all I care.

"We have done very little business with India, their Tariffs are too high, among the highest in the World," Trump shared on Truth Social.

Latching on to Trump's jibe, Rahul Gandhi said everybody except Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman knows that the country's economy is "a dead economy".

Asked to comment on Trump's remarks, Gandhi said, "He is right, everybody knows this except the prime minister and the finance minister. Everybody knows that the Indian economy is a dead economy. I am glad that President Trump has stated a fact." "It is a dead economy, are you people not aware of it?" he asked reporters.

Hitting back at the Congress leader, BJP IT department head Amit Malviya said, "Rahul Gandhi has hit a new low by echoing 'dead economy' jibe -- a shameful insult to the aspirations, achievements, and well-being of the Indian people," "But let's be honest -- the only thing truly 'dead' here is Rahul Gandhi's own political credibility and legacy," he added in a post on X.

Citing data showing India’s growth in various sectors, the BJP leader asserted, "This is not a dead economy. This is a surging, resilient India." He alleged that Gandhi's "constant attempts" to belittle India's economic rise are not mere "political jabs". They are "direct insults" to the 140 crore Indians working hard to build a better future, he charged.

BJP MP Anurag Thakur said making anti-India statements has become Rahul Gandhi's "mentality".

"Whenever anyone makes an anti-India statement in the world, he grabs it," the former Union minister said.

Later, Gandhi said in a post on X, "THE INDIAN ECONOMY IS DEAD. Modi killed it. 1. Adani-Modi partnership. 2. Demonetisation and a flawed GST. 3. Failed 'Assemble in India'. 4. MSMEs wiped out. 5. Farmers crushed." Backing the government, Shiv Sena (UBT) lawmaker Priyanka Chaturvedi said the Indian economy is among the top five economies of the world and calling it "dead" can only come from a position of "arrogance" or "ignorance".

In a suo motu statement on Trump tariffs in both houses of Parliament, Goyal said international institutions and economists see India as the bright spot in the global economy.

India is contributing to almost 16 per cent of global growth, he said, adding that it is also widely expected that "we will become the third largest" economy in a few years.

"In just over a decade, India has rapidly transformed from being one of the Fragile 5 to the fastest-growing major economy in the world. We have risen from the 11th largest economy to one of the top 5 economies, driven by our reforms, the hard work of our farmers, MSMEs and entrepreneurs," Goyal said.

Goyal further said that in the last decade, the government has taken transformative measures to promote India as the manufacturing hub of the world.

India's young, skilled and talented workforce is driving innovation and competitiveness of the Indian industry, he said.

"Our exports have steadily increased during the last 11 years. In an increasingly protectionist world, India has done mutually beneficial trade agreements with the UAE, UK, Australia and EFTA (European Free Trade Area) countries," he said.

"We are also committed to similar trade agreements with other countries." Goyal further said that the government attaches the utmost importance to protecting and promoting the welfare of our farmers, workers, entrepreneurs, exporters, MSMEs and all sections of industry. "We will take all necessary steps to secure and advance our national interest," Goyal said on the US tariff action.

The tariff action is being seen as a pressure tactic to get New Delhi to agree to demands made by the US, which has, in recent days, got favourable trade deals with major partners like Japan, the UK and the European Union.

While announcing the tariff, Trump described India's trade policies as "most strenuous and obnoxious".

"All things not good! India will therefore be paying a tariff of 25 per cent, plus a penalty for the above, starting on August first," Trump said in a social media post.

India's import of crude oil from Russia has risen from 0.2 per cent of total purchases before the Russia-Ukraine war to 35-40 per cent.

Taking a swipe at Modi on the US tariffs, Congress chief Mallikarjun Kharge said the prime minister had observed a "maun vrat" in Parliament on Trump's India-Pakistan ceasefire claims, and asked whether he will remain silent on the baseless allegations made by the American leader on India.

Taking note of the US president’s announcement, he said, “This will harm the country's trade; MSMEs and farmers will also be adversely affected. Many industries will suffer heavy losses. Your ministers have been talking about negotiating a trade deal with America for months. Some of them camped in Washington for several days." "This is how your friend - 'Namaste Trump' and 'Abki Baar Trump Sarkar' rewarded our country for your friendship?" Kharge asked Modi in a post on X. PTI MPB RR CS SKC PK ASK GSN MPB GSN GSN