Prime Minister Narendra Modi on Tuesday hailed India's economic growth in the face of global uncertainties, saying that the country has stayed resilient in the face of ' economic selfishness'. His remark came days after India reported a 7.8% GDP growth for the first quarter of 2025–26, defying expectations.
“The GDP numbers for the first quarter of this year have once again proven that Bharat has performed beyond every expectation and estimate," the Prime Minister said during the inauguration of Semicon India 2025.
“On one hand, many of the world’s economies are facing uncertainty and challenges related to economic selfishness. Yet, in this environment, Bharat has achieved a remarkable growth rate of 7.8 per cent," he added.
Calling the growth broad-based, PM Modi said, “This growth is visible across all sectors, and it brings a unique enthusiasm to our citizens."
“With this momentum, we are well on our way to becoming the world’s third-largest economy," he said.
Also read: Semicon India 2025: PM Modi hails India’s fab power as key to the world’s biggest change
'Daam Kam, Dum Zyada': Modi asks India to prove its mettle
This isn’t the first time PM Modi has highlighted India’s economic resilience in the face of Trump's tariffs.
On August 15, addressing the nation from the Red Fort on Independence Day, he called India “unstoppable” and urged citizens and businesses to demonstrate their strength in global markets with quality products.
He said that India would not compromise on farmers’ interests or accept policies detrimental to national growth. “This is the time to script history. We have to rule the world market. We have to lower production costs. It is time to prove our mettle in global markets with quality products,” he said.
The Prime Minister further added, "'Daam Kam, Dum Zyada' (less price, higher quality) should be the mantra. Economic selfishness is on the rise. Don't worry about the other country. It is time to move ahead and meet our goals."
Modi also stressed building a 'samarth Bharat' (strong India) by focusing on internal strength rather than belittling others. He encouraged support for “Made in India” products and reaffirmed his government’s commitment to farmers, calling them vital contributors to the country’s economy.
US tariffs fail to shake India’s momentum
Data from the National Statistics Office (NSO) released Friday showed India’s GDP has surged to a five-quarter high, exceeding most forecasts in Q1 FY26. This follows 7.4% growth in Q4 FY25 and 6.7% in the same quarter last year.
The strong performance comes just days after US President Donald Trump doubled tariffs on Indian imports to 50%, a punitive move linked to India’s continued oil trade with Russia.
India's GDP numbers from Q1FY25 sharply contradicts Trump’s dismissal of the Indian economy as “dead”.
With over 60% of GDP driven by domestic demand—including household consumption, services, and infrastructure—India is less vulnerable to foreign trade shocks than export-led economies like China, Germany, or South Korea.
Estimates suggest the tariffs could trim 30–80 basis points from India’s annual GDP growth, but with Q1 growth at 7.8%, the economy retains strong momentum.
India’s performance is especially notable against a challenging global backdrop: high US interest rates, inflation, and geopolitical instability in Europe and Asia.
Strong domestic consumption, an expanding digital economy, and infrastructure development have helped the country thrive despite these headwinds.
Strategically, punishing India risks alienating a key partner in the Indo-Pacific. As the world’s most populous nation, the fastest-growing major economy, and a leading force in services and manufacturing, India remains vital for global balance. Tariffs threaten not only economic cooperation but also geopolitical goodwill, potentially pushing India closer to Russia or China.
Rather than undermining the relationship, the US could benefit from deeper economic partnership, including supply chain reshoring, technology co-development, and expanded trade. Yet, the Trump administration’s approach turns a potential win-win into a zero-sum game.
“The GDP numbers for the first quarter of this year have once again proven that Bharat has performed beyond every expectation and estimate," the Prime Minister said during the inauguration of Semicon India 2025.
“On one hand, many of the world’s economies are facing uncertainty and challenges related to economic selfishness. Yet, in this environment, Bharat has achieved a remarkable growth rate of 7.8 per cent," he added.
Calling the growth broad-based, PM Modi said, “This growth is visible across all sectors, and it brings a unique enthusiasm to our citizens."
“With this momentum, we are well on our way to becoming the world’s third-largest economy," he said.
Also read: Semicon India 2025: PM Modi hails India’s fab power as key to the world’s biggest change
'Daam Kam, Dum Zyada': Modi asks India to prove its mettle
This isn’t the first time PM Modi has highlighted India’s economic resilience in the face of Trump's tariffs.
On August 15, addressing the nation from the Red Fort on Independence Day, he called India “unstoppable” and urged citizens and businesses to demonstrate their strength in global markets with quality products.
He said that India would not compromise on farmers’ interests or accept policies detrimental to national growth. “This is the time to script history. We have to rule the world market. We have to lower production costs. It is time to prove our mettle in global markets with quality products,” he said.
The Prime Minister further added, "'Daam Kam, Dum Zyada' (less price, higher quality) should be the mantra. Economic selfishness is on the rise. Don't worry about the other country. It is time to move ahead and meet our goals."
Modi also stressed building a 'samarth Bharat' (strong India) by focusing on internal strength rather than belittling others. He encouraged support for “Made in India” products and reaffirmed his government’s commitment to farmers, calling them vital contributors to the country’s economy.
US tariffs fail to shake India’s momentum
Data from the National Statistics Office (NSO) released Friday showed India’s GDP has surged to a five-quarter high, exceeding most forecasts in Q1 FY26. This follows 7.4% growth in Q4 FY25 and 6.7% in the same quarter last year.
The strong performance comes just days after US President Donald Trump doubled tariffs on Indian imports to 50%, a punitive move linked to India’s continued oil trade with Russia.
India's GDP numbers from Q1FY25 sharply contradicts Trump’s dismissal of the Indian economy as “dead”.
With over 60% of GDP driven by domestic demand—including household consumption, services, and infrastructure—India is less vulnerable to foreign trade shocks than export-led economies like China, Germany, or South Korea.
Estimates suggest the tariffs could trim 30–80 basis points from India’s annual GDP growth, but with Q1 growth at 7.8%, the economy retains strong momentum.
India’s performance is especially notable against a challenging global backdrop: high US interest rates, inflation, and geopolitical instability in Europe and Asia.
Strong domestic consumption, an expanding digital economy, and infrastructure development have helped the country thrive despite these headwinds.
Strategically, punishing India risks alienating a key partner in the Indo-Pacific. As the world’s most populous nation, the fastest-growing major economy, and a leading force in services and manufacturing, India remains vital for global balance. Tariffs threaten not only economic cooperation but also geopolitical goodwill, potentially pushing India closer to Russia or China.
Rather than undermining the relationship, the US could benefit from deeper economic partnership, including supply chain reshoring, technology co-development, and expanded trade. Yet, the Trump administration’s approach turns a potential win-win into a zero-sum game.
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