New Delhi: In a veiled rebuttal to the 'dead economy' jibe, Prime Minister Narendra Modi on Tuesday said the Indian economy grew 7.8 per cent in the first quarter, surpassing all expectations despite global uncertainties and challenges driven by economic self-interest.
Speaking at the Semicon India 2025 conference here, he said GDP growth in April-June was better than 'every expectation, hope and estimate'. Indian economic performance came amidst global uncertainties and "aarthik swarth se paida hue chunautiya hai" (challenges stemming from economic self-interest), he said.
"Once again, India has outperformed every expectation, every estimate, and every forecast," Modi said. While economies around the world are facing concerns and challenges driven by economic self-interest, India has achieved a growth rate of 7.8 per cent.
Modi emphasized that this growth is visible across all sectors -- manufacturing, services, agriculture, and construction -- with enthusiasm evident everywhere, and added that India's rapid growth is infusing new energy across industries and among every citizen. He affirmed that this trajectory of growth is propelling India swiftly towards becoming the third largest economy in the world.
The Prime Minister did not elaborate on the challenges but his statement came days after US President Donald Trump imposed an additional 25 per cent tariff on Indian goods over the country's purchases of Russian oil. This increased total tariffs to 50 per cent -- the highest in the world. In the run up to the imposition of the tariff, Trump had dismissed India's economy as "dead".
India in the first quarter as well as the 2024-25 (April 2024 to March 2025 fiscal) and years proceedings it, has remained the world's fastest growing major economy, outshining China by yards. The US economy grew at 3.3 per cent in April-June. US officials have in recent days used unduly harsh words to criticise India over continued purchase of Russian oil. Modi said his government will unleash a new phase of next generation reforms soon. "In the coming times, we are going to begin a new phase of next-generation reforms," he said.
While he did not spell out the reforms planned, Modi may have hinted on the planned biggest reform of the goods and services tax (GST), with tax cuts on a wide range of common use products -- from shampoos and hybrid cars to consumer electronics. The GST Council, the all-powerful decision making body, is meeting in New Delhi for two-days beginning September 3 to discuss the proposed pruning of rates.
Since January, Trump has launched a broad global tariff programme, slapping higher rates on imports from countries with which his administration had political grievances. Besides India, only Brazil has been slapped with a 50 per cent tariff. Trump argues that the tariffs boost American manufacturing and protect jobs, but his trade policies have led to economic chaos worldwide.
