Prime Minister Narendra Modi on Tuesday underlined India’s strong economic performance, stating that the country’s GDP growth of 7.8% in the first quarter of 2025-26 was achieved despite global headwinds and “challenges driven by economic self-interest” — a clear reference to the tariffs imposed by US President Donald Trump.
Speaking at the Semicon India Conference in Delhi, PM Modi said, “The Indian economy has outperformed every expectation, estimate and forecast.” He emphasized that growth was broad-based, with manufacturing, services, agriculture, and construction all contributing positively.
India’s growth momentum
According to official data, India’s GDP grew by 7.8% in the April-June quarter, outpacing the earlier estimate of 6.5% and marking the fastest rise in five quarters. The growth rate was also 1.3 percentage points higher than the same period last year. The last comparable high was 8.4% in January-March 2024.
“This trajectory of growth is propelling India swiftly towards becoming the third-largest economy,” PM Modi said, countering recent remarks by Donald Trump who had labelled India a “dead economy.” He added, “The day is not far when the world will say: Designed in India, Made in India, Trusted by the World.”
Tariff tensions with US
The remarks come in the backdrop of escalating trade tensions with Washington. Last month, President Trump announced a 25% reciprocal tariff on Indian goods and an additional 25% penalty for India’s purchase of Russian oil. He has alleged that India’s imports were fueling Moscow’s war on Ukraine.
Trump, in a post on his Truth Social platform, claimed that India has offered to reduce tariffs on American goods “to nothing” but insisted it was “too late.” He described the Indo-US trade relationship as a “one-sided disaster” that has favored India for decades.
India’s response
New Delhi has rejected Washington’s accusations and termed the fresh tariff measures “unfair, unjustified and unreasonable.” The Ministry of External Affairs maintained that India’s energy imports are guided by market conditions and national interest, particularly to safeguard the energy security of its 1.4 billion citizens.
“It is extremely unfortunate that the US has chosen to impose additional tariffs on India for actions that several other countries are also taking in their own national interest,” the MEA said, affirming that India “will take all actions necessary to protect its national interests.”