New Delhi: Prime Minister Narendra Modi on Tuesday said India’s economy grew by 7.8 per cent in the first quarter of FY2025-26, despite “challenges driven by economic self-interest”—a pointed reference to tariffs imposed on Indian goods by U.S. President Donald Trump.

Speaking at the Semicon India Conference 2025 in Delhi, a day after concluding his visit to China and Japan, PM Modi said the Indian economy had “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.

Fastest Growth in Five Quarters

According to official data, India’s GDP growth of 7.8% in April–June 2025 beat estimates of 6.5%, and was 1.3 percentage points higher than the same quarter last year.

  • April–June 2024 GDP growth: 6.5%
  • April–June 2025 GDP growth: 7.8%
  • Last peak: 8.4% in Jan–March 2024

“This growth is visible across all sectors—manufacturing, services, agriculture, and construction—with enthusiasm evident everywhere,” PM Modi said, adding that India is moving swiftly towards becoming the world’s third-largest economy.

Countering Trump’s “dead economy” remark, he said:

“The day is not far when the world will say: Designed in India, Made in India, Trusted by the World.”

Trump’s Tariffs on India

Last month, U.S. President Donald Trump imposed a 25% reciprocal tariff on Indian goods and an additional 25% penalty for India’s continued imports of Russian oil.

Trump, who returned to power in January 2025, accused New Delhi of “fueling Moscow’s deadly attacks on Ukraine” by buying discounted Russian crude.

On his social media platform Truth Social, Trump wrote:

  • India “sells massive amounts of goods” to the U.S. but buys “very little.”
  • The relationship has been a “totally one-sided disaster for decades.”
  • New Delhi has “offered to cut tariffs to nothing, but it’s getting late.”

Trump’s comments came just hours after PM Modi held bilateral talks with Russian President Vladimir Putin.

India’s Response

India has rejected Washington’s trade actions, calling the tariffs “unfair, unjustified, and unreasonable.”

The Ministry of External Affairs said in a statement:

“The United States has in recent days targeted India’s oil imports from Russia. We have already made clear our position, including the fact that our imports are based on market factors and aimed at ensuring the energy security of 1.4 billion people of India.”

The MEA added it was “extremely unfortunate” that the U.S. had chosen to penalise India for actions that “several other countries are also taking in their own national interest,” vowing to take “all actions necessary to protect India’s national interests.”

Conclusion

India’s strong economic growth comes at a time of intensifying global trade disputes, particularly with the U.S. The clash over tariffs and Russian oil imports underscores the fragile balance between New Delhi’s growth ambitions and Washington’s geopolitical concerns.

For now, the Modi government is projecting confidence—using the 7.8% GDP growth rate as evidence that India can sustain momentum even in turbulent global conditions.