Directly accusing Modi of corruption in the deal for the French fighter planes, he said the prime minister had favoured his businessman "friend" Anil Ambani by getting him the "contract".
"When I raised the issue of Rafale deal and corruption in the Parliament, Modiji did not even spare a minute to answer my questions," Gandhi said.
"The UPA government had given the Rafale deal to the state-owned Hindustan Aeronautics Limited but when PM Modi visited France, he took Reliance's Anil Ambani with him and gave him the deal, despite having no experience in defence sector," he alleged.
In his address to party workers at the Ramlila grounds here, Gandhi claimed that the Rafale deal had snatched job opportunities from young Indians, including engineers, as the planes will be manufactured abroad.
Gandhi said the price of the Rafale plane fixed now is about "three times" the amount agreed upon during the previous Congress-led government.
"Anil Ambani's company was formed just a week before the deal and Modiji personally handed the deal to it. The price of Rafale aircraft was increased by 3 times," he said.
He said this "corruption" by Modi will become apparent over time.
The Congress chief claimed that only 450 youths got employment in the country every day while China was creating jobs for 50,000 people every 24 hours.
"Our youths more honest, capable and stronger than the Chinese but it is a matter of shame that despite having almost equal population, they are getting fewer job opportunities," he said.
He questioned why Rs 2,30,000 crore could be "written off" as bad loans to 15 or 20 big industrialists, but the government could not help debt-ridden farmers.
When farmers are unable to pay back their loans, they are called defaulters and are jailed. But bad debts of big industrialists are called non-performing assets (NPA), he said.
"In the last two years, Modi government waived loans worth Rs. 2,00,000 crore of only 15 businessmen. I asked for loan waivers for farmers, too. But his response was: Silence," he said.
He accused Modi of "remaining silent" on atrocities against the Dalits, tribals and minorities across the country. He alleged that the Prime Minister does not utter a word in support of the oppressed. He also accused the government of failing to ensure the safety of women.
"All across the country, Dalits, Adivasis and minorities are oppressed, women are gangraped. But Modiji does not utter a word in support of the oppressed," he said.
(With inputs from PTI)