NEW DELHI: Bharatiya Janata Party (BJP) on Thursday put up a strong counter against Rahul Gandhi's warning of an "economic tsunami" for India, dismissing it as "classic fear-mongering."
The Lok Sabha leader of opposition had raised concerns over the escalating situation in the Middle East and its potential impact on India.
Responding sharply, BJP IT cell chief Amit Malviya rejected Rahul's claims and argued that India is well-positioned to withstand any economic fallout from the Iran war. Citing several economic and strategic indicators, Malviya asserted that "India is not defenceless" amid the ongoing crisis in Middle East.
In a post on X, Malviya cited a series of economic indicators to counter Rahul's claims. He said E-way bill generation rose 12.9% in May 2026, while manufacturing and services activity remained strong, with PMI readings of 56.6 and 58.9 respectively. Retail inflation stood at 3.48% in April, below the Reserve Bank of India's target, while gross foreign direct investment (FDI) inflows touched a record $94.5 billion in FY26.
Pointing to India's external sector strength, Malviya said comfortable foreign exchange reserves and robust services exports continued to provide stability amid global volatility.
"These are not signs of an economy without shock absorbers. These are signs of resilience. The Government has also taken direct measures to protect citizens, businesses and jobs," Malviya said.
The BJP leader also highlighted steps taken by the Centre to shield consumers and businesses from global economic shocks.
"When global crude prices surged, excise duty cuts on petrol and diesel cushioned consumers. Supply-side interventions and export restrictions were used when necessary to protect domestic availability and contain inflation. Through ECLGS 5.0, MSMEs receive 100% guarantee coverage while non-MSMEs and airlines receive 90% coverage. Additional credit support of up to 20% of peak working capital, capped at Rs 100 crore, is available to eligible borrowers," he said.
"Airlines facing fuel-price volatility can receive assistance of up to Rs 1,500 crore per borrower. The objective is clear: protect jobs, sustain supply chains and ensure uninterrupted production," he added.
Malviya further said the Union Cabinet had approved Rs 37,500 crore for surface coal and lignite gasification projects, aimed at creating 75 million tonnes of gasification capacity and attracting investments worth Rs 2.5-3 lakh crore.
"These are not the actions of a government dismantling shock absorbers. These are the actions of a government actively strengthening them," he said.
Turning his attack on the previous UPA government, Malviya cited economic indicators from 2009 to 2014. He claimed the rupee depreciated by 36% during the period, while foreign exchange reserves declined from around $294 billion in July 2011 to approximately $256 billion in August 2013.
"Forex reserves declined from around $294 billion in July 2011 to approximately $256 billion in August 2013. Import cover fell to just over six months by September 2013, down sharply from 17 months in March 2004," he said.
"The forex reserves-to-external debt ratio deteriorated from 95.8% in FY11 to 68.8% in FY14. The RBI was forced to open the FCNR(B) window and offer attractive incentives to attract dollar deposits. India ultimately mobilised $26.6 billion through the scheme, roughly twelve times the size of the 1991 IMF bailout," he added.
Malviya urged Rahul to "stop selling panic", claiming that India's economic safeguards were weakened during the UPA era, long before any external shock emerged.
His remarks came in response to Rahul's warning that India was heading towards an "economic tsunami" due to the BJP government's alleged dismantling of the country's economic "shock absorbers" amid ongoing tensions in Middle East.
"An economic tsunami is coming. The reason is that the BJP government has removed India's protection system, which was a shock absorber from the international economy. A dangerous economic tsunami is coming, prices are increasing, and this is just the beginning," Rahul had said.
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