A war of words broke out between the BJP and the Congress on Thursday after the Leader of the Opposition Lok Sabha Rahul Gandhi warned that India was heading towards an “economic tsunami”, prompting BJP leader Amit Malviya to accuse him of spreading fear.
Response to Gandhi’s criticisms The Narendra Modi government, Malviya, said the Congress leader was engaging in “fear mongering” by claiming that the Center has dismantled the country’s economic safeguards.
In a post on X, Malviya cited a series of economic indicators to say India remains well placed to withstand global uncertainties. He said the issuance of e-way bills increased by 12.9 per cent in May 2026, while manufacturing and services activity remained strong, with PMI readings of 56.6 and 58.9 respectively.
He also pointed to retail inflation remaining below the Reserve Bank of India’s (RBI) target of 3.48% in April, record total FDI inflows of $94.5 billion in FY26, and comfortable foreign exchange reserves supported by resilient services exports.
“These are not signs of an economy that is not absorbing shocks. They are signs of resilience. The government has also taken direct measures to protect citizens, businesses and jobs,” Malviya said.
The BJP lists the measures
The head of the BJP’s IT cell also explained what he described as the Centre’s efforts to protect consumers and businesses from external economic pressures.
Referring to periods of high crude oil prices, he said: “When global crude oil prices rose, tariff cuts on gasoline and diesel relieved consumers. Supply-side interventions and export restrictions were used when necessary to protect domestic stocks and contain inflation.”
“Through ECLGS 5.0, MSMEs get 100% guarantee coverage while non-MSMEs and airlines get 90% coverage,” he said.
Malviya added that eligible borrowers can obtain additional credit support of up to 20 percent of peak working capital, subject to a maximum of $100 Crores.
“Airlines facing fuel price fluctuations can receive assistance of up to $1500 Crores per borrower. He added that the goal is clear: to protect jobs, maintain supply chains and ensure uninterrupted production.
The BJP leader also noted the Union Cabinet’s approval $37,500 crore for surface coal conversion and lignite gasification projects, with the aim of creating 75 million tonnes of gasification capacity and attracting investments of estimated value. $2.5-3 million crores.
“These are not the actions of a government that is dismantling shock absorbers. These are the actions of a government that is actively working to strengthen them,” he said.
Malviya is targeting the record in the UPA era
Criticizing the previous Congress-led United Progressive Alliance government, Malviya claimed that economic vulnerabilities actually increased between 2009 and 2014.
The value of the rupee depreciated by 36 per cent during that period, while foreign exchange reserves declined from about US$294 billion in July 2011 to about US$256 billion in August 2013, he said.
According to Malviya, import cover also declined significantly, falling to just over six months by September 2013 from 17 months in March 2004.
“The ratio of foreign exchange reserves to external debt 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. Eventually, India mobilized US$26.6 billion through this scheme, almost twelve times the size of the 1991 IMF bailout.”
Concluding his response, Malviya urged Gandhi to “stop panic selling”, asserting that during the UPA years India’s economic “shock absorbers” had been weakened.
Rahul says: Modi will not become Prime Minister in a year
The BJP leader’s remarks came after Rahul Gandhi warned that India faces the possibility of a major economic crisis amid ongoing conflicts in West Asia.
Alleging that the BJP government weakened India’s ability to absorb international shocks, Gandhi said: “An economic tsunami is coming. The reason is that the BJP government has removed India’s protectionist system, which was absorbing shocks from the international economy.”
He added, “A dangerous economic tsunami is coming, prices are rising, and this is just the beginning.”
Speaking at an event organized by the Adivasi Congress at Indira Bhawan, Gandhi also claimed that the system that was once “controlled” by Modi is now collapsing and started sharing information about the Prime Minister and his cabinet members with him, news agency PTI quoted him as saying.
“In my estimation, Modiji will not become prime minister within a year,” the Congress leader added.
