Prime Minister Narendra Modi on Tuesday highlighted India’s 7.8% GDP growth in the first quarter of the 2025-26 financial year, asserting that the economy has outperformed expectations despite external challenges, including tariffs imposed by the United States.
Growth Amid Global Challenges
Speaking at the Semicon India Conference in Delhi, PM Modi noted that global economies are facing hurdles driven by economic self-interest, apparently referencing the tariffs levied by US President Donald Trump.
“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,” he said in Hindi.
The GDP growth surpasses earlier estimates of 6.5% and represents a 1.3 percentage point rise compared to the same quarter last year. This marks the fastest growth in five quarters, with the previous high being 8.4% in January-March 2024.
Sectoral Growth Driving Momentum
PM Modi said the robust growth is visible across all sectors—manufacturing, services, agriculture, and construction. He emphasized that this trajectory is pushing India closer to becoming the world’s third-largest economy.
“The day is not far when the world will say: Designed in India, Made in India, Trusted by the World,” he added, countering claims from Trump’s administration labeling India as a “dead economy.”
US Tariffs and India’s Response
Last month, President Donald Trump imposed 25% reciprocal tariffs on India, along with an additional 25% penalty for purchasing Russian oil, criticizing India for relying on Moscow while trading little with the US. Trump claimed India had historically imposed high tariffs on American goods, creating a “one-sided” trade relationship.
India has described these tariffs as “unfair, unjustified and unreasonable”. The Ministry of External Affairs emphasized that India’s oil imports from Russia are market-driven and essential for energy security of 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 statement said.
India has reaffirmed its commitment to protect national interests while continuing to engage globally on trade and economic matters.
