Senior Congress leader and former Union Finance Minister P. Chidambaram on Sunday declined to comment on former US President Donald Trump’s controversial remark describing India as a “dead economy”, a phrase that was later echoed by Congress MP Rahul Gandhi, triggering a fresh political row amid debate over the Union Budget.

Speaking to reporters after delivering a sharp critique of the Union Budget presented by Finance Minister Nirmala Sitharaman, Chidambaram was asked to respond to Trump’s statement, made last year following the imposition of a 25% penalty tariff on Indian imports over New Delhi’s purchase of Russian oil. Chidambaram said he would not comment, as he did not have the full context in which the remark was originally made.

Trump had lashed out at India in July, saying he did not care if India and Russia took their “dead economies down together”, accusing New Delhi of indirectly funding Russia’s war on Ukraine through crude oil purchases. India countered the criticism by maintaining that it would secure energy supplies in the most cost-effective manner while pointing out that several European countries continued trade with Russia.

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The issue gained domestic political traction when Rahul Gandhi publicly agreed with Trump’s assessment, stating that the former US president had “stated a fact.” His comment drew strong criticism from the ruling Bharatiya Janata Party, though some Congress leaders distanced themselves from the remark. Gandhi later reiterated the phrase while highlighting the impact of US tariffs on India’s textile sector, warning of job losses and factory shutdowns.

The controversy resurfaced after Sitharaman presented her ninth consecutive Union Budget, which faced criticism for offering limited immediate relief to the middle class. Markets reacted negatively, with the Sensex falling sharply on budget day, adding fuel to the opposition’s attack.

Chidambaram led the Congress’s post-budget critique, flagging concerns over fiscal management and a decline in capital expenditure as a share of GDP. Rahul Gandhi also criticised the budget, saying it failed to address unemployment, farmers’ distress, and shrinking household savings, a charge the finance minister rejected, asserting that India’s economic fundamentals remain strong.

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