August 3, 2025

In a public meeting on August 2, 2025, Prime Minister Narendra Modi asserted that India is on the trajectory to becoming the world's third-largest economy. Addressing the uncertainties dominating the world economy, he emphasized the importance of prioritizing India's own economic interests. His remarks follow statements by US President Donald Trump, who labeled India a 'dead economy' following the announcement of a 25% tariff on Indian goods aimed at pressuring New Delhi into compliance with US demands. PM Modi stated that given the current global economic climate, it's crucial for India to remain focused on its economic objectives. He remarked that while the world is experiencing instability, countries globally are beginning to operate with a perspective centered around their own interests. However, he is optimistic about India's position and asserted that the country must double down on promoting indigenous products to solidify its economic ascent. Making a passionate appeal to local merchants, Modi urged them to pledge selling only Swadeshi goods, stating that supporting homegrown products is the best service to the nation. He called upon citizens to be conscious consumers, asking, 'Whatever we buy, we should ask ourselves — has an Indian toiled to make this?' He pushed the 'Vocal for Local' mantra, illustrating how supporting Indian-made products adds value to the Indian economy and pays tribute to the ethos of Mahatma Gandhi. Highlighting the importance of a collective movement towards local products, he emphasized that this effort should be universal, involving every political party and leader. Modi’s ambitions for a developed India hinge on fostering a strong sense of nationalism that embodies the Swadeshi movement. In referencing international trade behaviors, Modi pointed to the recent tariff actions by the US as a tactical maneuver to secure concessions from India amid the backdrop of newly favorable agreements between the US and other major economies. He mentioned that India remains firm in its negotiation positions, especially concerning agriculture, dairy products, and genetically modified foods in ongoing bilateral discussions with the US. The imposition of a 25% tariff on Indian imports effective from August 7, initially set for August 1, came as a response to the slow progress on trade agreements between the two nations. President Trump’s remarks about India's economic standing served as a stimulus for ongoing discussions in the Indian Parliament, where Commerce Minister Piyush Goyal defended India's growth metrics, branding it the fastest-growing major economy globally. Goyal dismissed Trump’s critique, articulating that India is on the path to the third-largest economy status within a few years, highlighting the government efforts to safeguard national interests against US tariffs. Trump’s statements on social media revealed his disdain towards India’s tariff policies, which he deemed excessive. Additionally, Congress leader Rahul Gandhi seized on the opportunity to echo Trump’s claims about India's economic condition, sparking a wave of criticism from Modi’s ruling party, the BJP. These international developments reflect a tense economic relationship between India and the US as Modi's administration seeks to navigate these pressures while strengthening the Indian economy through local production and consumption initiatives. As Modi calls for a united front in promoting Swadeshi, the underlying message remains clear: India must emerge resiliently from outside pressures to realize its ambitions on the global stage.

Read More at Thehindu →

Tags: India, Economy, Modi, Swadeshi, Us tariffs, Local products,