By Pragati Saha
On Tuesday, Prime Minister Narendra Modi highlighted India’s latest performance on the economy, referring to the growth of 7.8% GDP in the first quarter of the year in spite of the challenge which was driven by economic self-interest. This was seen as a reference to the rising protectionist measures across the world, basically the US tariffs.
While addressing the Semicon India Conference in Delhi, a day after his return from China and Japan, PM Modi said that the Indian economy has outperformed in every expectation, estimate, and forecast, even when they have to tackle economic self-interest.
While PM Modi was speaking at the Semicon India 2025, he described chips as the ‘digital diamonds’ of the 21st century, by drawing them parallel to oil in the last century. He stated the fact that petroleum once held global fortunes, and in the current time, it will be the semiconductor which is holding a similar importance.
In the April-June quarter India recorded a 7.8 percent year-to-year growth in the gross domestic product against 7.7 percent in the previous three months, according to the data which was provided by the government. Before the US tariff was introduced on Indian products the GDP growth, which took place in April-June, 2025-26 was the highest in the last five quarters.
According to the data provided by the government India is currently the fourth-largest economy, and is on track to become the third-largest by 2030 with an estimate of 7.3 trillion USD GDP.
Even though PM Narendra Modi did not mention any name it appears that the remark which he made was in reference to the 50 percent US tariff which was being imposed by the US government.
Trump has recently imposed a 50 percent tariff on goods exported by India- which is joint-highest alongside Brazil, making a sharp escalation in trade. From the 50 percent, the second round of the 25 per cent duties, which came into effect on 27th August, targeted India as it continuously purchased Russian Oil, which was claimed to be a funding of Moscow’s War in Ukraine by Washington .
India on the other hand, has called the tariff unjustified and has been against it despite constant blow received from the US President and his leaders.