New Delhi– Prime Minister Narendra Modi on Tuesday asserted that India’s economy is thriving, growing at 7.8 percent in the first quarter of 2024-25, despite global turbulence and politically driven trade restrictions. His remarks came as an indirect rebuttal to U.S. President Donald Trump’s dismissal of India as a “dead economy.”
Speaking at the Semicon India 2025 conference, Modi said the April–June GDP growth exceeded “every expectation, every hope, and every estimate.” He noted that while many nations are struggling with “challenges stemming from economic self-interest,” India continues to lead as the world’s fastest-growing major economy, far outpacing the United States, which expanded at 3.3 percent in the same period.
Modi highlighted that growth is visible across manufacturing, services, agriculture, and construction, and that optimism is resonating among industries and citizens alike. He said this momentum is propelling India closer to becoming the world’s third-largest economy.
The comments followed Washington’s decision to double tariffs on Indian goods to 50 percent, citing New Delhi’s continued oil trade with Russia. Trump’s aggressive trade program has already disrupted global markets, with Brazil joining India on the list of countries facing steepest tariffs.
Undeterred, Modi said his government would soon launch “a new phase of next-generation reforms.” Though he did not detail specific measures, officials expect the upcoming GST Council meeting in New Delhi to discuss sweeping tax cuts on consumer goods ranging from shampoos and hybrid cars to electronics reforms that could significantly ease household expenses and boost demand.
India has consistently outperformed China and other peers in recent years, maintaining its status as the fastest-growing major economy. Modi’s confidence in sustained momentum comes at a time when global powers, particularly the U.S., are reshaping trade policies to serve domestic agendas, leaving much of the world to cope with uncertainty.
