‘Shows Poorly How He Undermines Hard Work of Indians’: Sitharaman Hits Back at Rahul Gandhi’s ‘Dead Economy’ Remark

September 1, 2026

Asheville: Finance Minister Nirmala Sitharaman has hit out at Congress leader Rahul Gandhi for describing the Indian economy as a “dead economy”, saying the remark undermines the hard work of Indian citizens at a time when the country recorded 7.8 per cent economic growth in the first quarter of the 2026-27 financial year.

In an exclusive interview with IANS on the sidelines of the G20 Finance Ministers’ meeting in Asheville, Sitharaman said it was “odd” that Gandhi continued to describe the Indian economy as dead despite what she termed consistently strong growth numbers.

“With these kinds of growth numbers consistently, it is such an odd thing that the Leader of Opposition, Shri Rahul Gandhi, constantly refers to the Indian economy as a dead economy,” she said.

“It just shows poorly as to how he undermines the hard work of the Indian citizens,” the Finance Minister added.

Sitharaman Says Opposition Can Question Government

Sitharaman said questioning the government was a legitimate responsibility of the Opposition in a democracy.

“It is one thing for an opposition party to constantly question the party in power, and that is only right. In democracy, you need a strong opposition party which speaks,” she said.

However, she argued that political criticism should not overlook the contribution of citizens whose efforts are driving economic growth.

“So I would appeal to the opposition party to take cognisance of the hard work of our citizens and not speak disparagingly about them,” Sitharaman said.

Asked whether Gandhi’s comments reflected a lack of economic understanding or political opposition to the government, Sitharaman pointed to the presence of economists within the Congress party.

“I thought there are quite a few economists within the Congress party who form an economic advisory group,” she said.

‘Good Numbers Quarter After Quarter’

The Finance Minister said economic performance could be improved in specific areas but argued that this should not obscure the broader growth figures.

“There can be performance which can be improved in some other areas. But that doesn’t undermine the overall good story, which is today revealed in the numbers,” she said.

“Every quarter after quarter, we are coming up with good numbers,” she added.

Sitharaman said she was “extremely pleased” with the latest growth figures, saying they reflected the efforts of Indian citizens despite continuing external challenges.

India Records 7.8% Growth in Q1 FY27

India’s economy was estimated to have grown 7.8 per cent in the April-June quarter of FY27.

Sitharaman said the manufacturing sector grew by 9.2 per cent, while financial and professional services expanded by 12.1 per cent. India’s foreign exchange reserves stood at around $700 billion, she added.

“These are not ordinary numbers,” Sitharaman said, attributing the performance to the efforts of Indians pursuing their aspirations while contributing to the country’s broader development goals.

She expressed confidence that the first-quarter performance would support growth during the financial year and said similar growth could be sustained in the coming quarters.

Sitharaman also credited reforms undertaken by the Narendra Modi government and cooperation from state governments. She said more than 1,000 laws had been removed and around 40,000 regulations simplified, while the government continued its engagement with industry, businesses and the trade sector.

The Finance Minister is in Asheville for the G20 Finance Ministers’ meeting. During her visit to Canada and the United States, she is also holding bilateral meetings with participating countries and engaging with international investors.