Rahul Gandhi Critiques Modi Amidst Market Turmoil Following Trump's Tariff Hikes
Market Chaos and Political Reactions
New Delhi: On Monday, Congress leader Rahul Gandhi expressed that President Donald Trump has exposed the underlying issues affecting the economy, while Prime Minister Narendra Modi appears to be absent from the situation as stock markets struggle due to US-imposed tariffs.
Gandhi, who serves as the Leader of Opposition in the Lok Sabha, emphasized the necessity for India to confront its economic realities and transition towards a robust, production-oriented economy that benefits all citizens.
The Congress party has been vocal in its criticism of the government's economic management, highlighting the challenges of rising costs, dwindling private investments, and stagnant wages that are adversely impacting the populace.
Earlier this month, the opposition raised alarms about prolonged stagnation in real incomes, a consumption surge fueled by credit expansion, and increasing inequality, questioning what it would take for Modi to acknowledge these pressing issues.
"Trump has shattered the illusion. The reality is harsh. PM Modi is nowhere to be found," Gandhi remarked in a post on X.
"India must face the truth. We have no alternative but to establish a resilient, production-driven economy that serves all Indians," he added.
The stock market experienced a significant downturn on Monday, with the benchmark Sensex plummeting by 2,226.79 points, marking its largest single-day drop in ten months. This decline was triggered by a global market collapse following Trump's tariff increases and China's retaliatory measures, raising concerns about an economic slowdown.
The 30-share BSE Sensex fell by 2,226.79 points or 2.95 percent, closing at 73,137.90, marking its third consecutive day of losses. At one point during the day, the index had dropped by 3,939.68 points or 5.22 percent to reach 71,425.01.
The NSE Nifty also saw a sharp decline, dropping 742.85 points or 3.24 percent to settle at 22,161.60, with an intra-day low of 21,743.65, down 1,160.8 points or 5.06 percent.
All Sensex stocks, with the exception of Hindustan Unilever, closed in the red, with Tata Steel experiencing the largest drop of 7.33 percent, followed by a 5.78 percent decline for Larsen & Toubro.
Asian markets were similarly affected, with Hong Kong's Hang Seng index plummeting over 13 percent, Tokyo's Nikkei 225 falling nearly 8 percent, the Shanghai SSE Composite index decreasing by over 7 percent, and South Korea's Kospi dropping more than 5 percent.
European markets also faced significant selling pressure, with declines of up to 6 percent.
US markets closed sharply lower on Friday, with the S&P 500 down 5.97 percent, the Nasdaq composite falling 5.82 percent, and the Dow Jones Industrial Average dropping 5.50 percent.