A BJP-Congress war of words erupted on Thursday after Lok Sabha Leader of Opposition Rahul Gandhi warned that India was heading towards an “economic tsunami”, prompting BJP leader Amit Malviya to accuse him of spreading fear.
Responding to Gandhi's criticism of the Narendra Modi government, Malviya said the Congress leader was engaging in “fear mongering” by claiming that the Centre had dismantled the country's economic safeguards.
In a post on X, Malviya cited a series of economic indicators to argue that India remains well-positioned to withstand global uncertainties. He said E-way bill generation 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 at 3.48 per cent in April, record gross foreign direct investment inflows of $94.5 billion in FY26, and comfortable foreign exchange reserves backed by resilient services exports.
"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.
BJP lists measures
{{/usCountry}}"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.
BJP lists measures
{{/usCountry}}The BJP's IT cell chief also outlined what he described as the Centre's efforts to shield consumers and businesses from external economic pressures.
Referring to periods of rising crude oil prices, he said, “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," he said.
Malviya added that eligible borrowers could access additional credit support of up to 20 per cent of peak working capital, subject to a cap of ₹100 crore.
"Airlines facing fuel-price volatility can receive assistance of up to ₹1,500 crore per borrower. The objective is clear: protect jobs, sustain supply chains and ensure uninterrupted production," he added.
The BJP leader also referred to the Union Cabinet's approval of ₹37,500 crore for surface coal and lignite gasification projects, aimed at creating 75 million tonnes of gasification capacity and attracting investments worth an estimated ₹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.
Malviya targets UPA-era record
Taking aim at the previous Congress-led UPA government, Malviya argued that economic vulnerabilities had actually increased between 2009 and 2014.
He said the rupee had depreciated by 36 per cent during that period, while foreign exchange reserves fell from around USD 294 billion in July 2011 to approximately USD 256 billion in August 2013.
According to Malviya, import cover also declined significantly, dropping to just over six months by September 2013 from 17 months in March 2004.
"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 USD 26.6 billion through the scheme, roughly twelve times the size of the 1991 IMF bailout," he said.
Concluding his response, Malviya urged Gandhi to "stop selling panic", asserting that it was during the UPA years that India's economic "shock absorbers" were weakened.
Rahul says, ‘Modi ji will not be PM in a year’
The BJP leader's remarks came after Rahul Gandhi warned that India was facing the prospect of a major economic crisis amid the ongoing conflicts in West Asia.
Claiming that the BJP government had 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 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," he added.
Speaking at an event organised by the Adivasi Congress at Indira Bhawan, Gandhi further alleged that a system once "controlled" by Modi was now breaking down and had begun sharing information about the prime minister and members of his cabinet with him, news agency PTI quoted him as saying.
"In my assessment, Modiji will not be the prime minister in a year's time," the Congress leader added.