Prime Minister Narendra Modi on Tuesday said India’s GDP grew by 7.8 per cent in the first quarter of this financial year despite “challenges driven by economic self-interest”, in an apparent reference to tariffs imposed on Indian goods by US President Donald Trump.
Speaking at the Semicon India Conference in Delhi, a day after winding up his trip to China and Japan, PM Modi said the Indian economy “outperformed every expectation, estimate and forecast”.
“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.
A defining chapter in India’s semiconductor journey is unfolding, with innovation and investment driving a new wave of growth. Addressing Semicon India 2025 in Delhi. https://t.co/5jurEGuYnI
— Narendra Modi (@narendramodi) September 2, 2025
India’s gross domestic product grew by 7.8 per cent against an estimate of 6.5 per cent. The figure is also 1.3 percentage points higher than in the same timeframe last year.
The GDP had grown 6.5% in the April-June quarter in the last fiscal, and the growth in the same three-month period in 2025-2026 represents the fastest rise in five quarters. The previous highest GDP growth was 8.4% in the January-March quarter of 2024.
“This growth is visible across all sectors — manufacturing, services, agriculture, and construction — with enthusiasm evident everywhere,” PM Modi said.
This trajectory of growth is propelling India swiftly towards becoming the third-largest economy, he said, countering Mr Trump’s “dead economy” dig at India.
“The day is not far when the world will say: Designed in India, Made in India, Trusted by the World,” he said.
Trump’s Tariffs On India
Donald Trump last month imposed a 25 per cent reciprocal tariff on India and an additional 25 per cent as a penalty for buying Russian oil. Mr Trump, who returned to power in January, has accused New Delhi of fueling Moscow’s deadly attacks on Ukraine by purchasing Russian oil.
On Monday, he claimed that India has offered to reduce its tariffs on US goods to “nothing”, but said New Delhi should have done it “years ago”.
“What few people understand is that we do very little business with India, but they do a tremendous amount of business with us. In other words, they sell us massive amounts of goods, their biggest “client,” but we sell them very little – Until now a totally one-sided relationship, and it has been for many decades,” he posted on his Truth Social platform.
“The reason is that India has charged us, until now, such high Tariffs, the most of any country, that our businesses are unable to sell into India. It has been a totally one-sided disaster,” he said.
Mr Trump, whose comments came hours after PM Modi held bilateral talks with Russian President Vladimir Putin, said that India buys “most of its oil and military products” from Russia and “very little” from the US.
“They have now offered to cut their Tariffs to nothing, but it’s getting late. They should have done so years ago. Just some simple facts for people to ponder,” he said.
“They have now offered to cut their tariffs to nothing, but it’s getting late. They should have done so years ago,” he posted on Truth Social, adding that the relationship between the two countries has been a “one-sided disaster”.
India On Trump’s Tariffs
India has said the US tariffs are “unfair, unjustified and unreasonable”.
“The United States has in recent days targeted India’s oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India,” the Ministry of External Affairs said in a statement last month.
It said it was “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”.
“India will take all actions necessary to protect its national interests,” it added.