The Indian National Congress, led by General Secretary Jairam Ramesh, on Friday accused the Modi government of devastating the Indian economy through “five Modi-inflicted shocks,” asserting that Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman are out of touch with the nation’s economic woes. The remarks, posted on X, echo Leader of Opposition Rahul Gandhi’s claim on July 31 that “everybody except Modi and Sitharaman knows the Indian economy is dead,” a sentiment controversially backed by U.S. President Donald Trump.

Ramesh outlined the shocks: First, the 2016 demonetization, which he said shattered growth momentum and destroyed livelihoods for millions by wiping out 86% of cash in circulation. Second, a “fundamentally flawed” Goods and Services Tax (GST), described as neither good nor simple, has crippled small businesses, with compliance costs favoring large corporations. Third, record imports from China—$101 billion in FY24—have shuttered lakhs of MSMEs, including a third of Gujarat’s stainless steel units, as exports rely heavily on Chinese raw materials.

Fourth, Ramesh highlighted a collapse in private investment, contrasting the buoyancy of 2004-14 under the UPA government with the current stagnation. He alleged that Indian industrialists are fleeing abroad, driven by a “Raid Raj” of politically motivated investigations and the growing influence of “Modani” cronies, eroding investor confidence. Finally, stagnant wages, especially in rural India, coupled with a 2.5-fold rise in household debt (from ₹43,124 to ₹1,09,373 per Indian since 2014), have fueled inequality. Household savings have plummeted, private consumption has sputtered, and luxury spending thrives, signaling a widening wealth gap.

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Gandhi, speaking in Parliament on Thursday, accused the BJP-led government of ruining economic, defense, and foreign policies, predicting a U.S. trade deal dictated by Trump. Responding to Trump’s “dead economy” remark, Gandhi said, “He is right, everybody knows this except the PM and FM.” However, government data paints a different picture: India’s GDP reached $4.187 trillion in 2025, overtaking Japan to become the world’s fourth-largest economy, with IMF forecasts of 6.8% growth in 2025. Exports hit $800 billion in FY24, and poverty rates dropped to 5% (World Bank, 2024), though inequality persists, with the top 1% owning over 40% of wealth.

Critics argue Congress’s claims overstate challenges. The BJP credits Modi’s reforms, like digital infrastructure and PLI schemes, for post-COVID recovery and vaccine exports. Yet, unemployment, at 8% in 2024, and rural distress remain concerns, with 40% of workers still in agriculture. Congress demands a white paper on the economy, citing a ₹155 lakh crore national debt as evidence of mismanagement. As U.S. tariffs loom, threatening 0.3% GDP growth, the debate intensifies over India’s economic trajectory.

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