PM Modi Reaffirms India’s Growth Path Amid Trump’s ‘Dead Economy’ Jibe and US Tariffs

Varanasi, Aug 2, 2025: Prime Minister Narendra Modi reaffirmed India’s economic resilience on Saturday, asserting that the nation is steadily moving towards becoming the world’s third-largest economy. Speaking at a public gathering in Banauli village in his parliamentary constituency Varanasi, Modi emphasized that amid global instability and uncertainty, India must focus sharply on its own economic priorities.

His remarks come just days after US President Donald Trump described India as a “dead economy” and imposed a 25 per cent tariff on Indian imports, alongside threats of a penalty over India’s continued trade ties with Russia, particularly in the military and energy sectors.

Modi acknowledged the current global scenario, stating, “The world economy is facing instability and uncertainty. In such times, countries are focusing solely on their own interests. India too must do the same.” He further stressed that to achieve the goal of becoming the third-largest economy, India must make Swadeshi a call for indigenous products a collective national mission.

In a strong push for the “Vocal for Local” initiative, Modi appealed to traders, shopkeepers, and citizens to promote and purchase Indian-made goods. “We must adopt the mantra of Vocal for Local. The feeling of Swadeshi in every action will define our future. This will also be a true tribute to Mahatma Gandhi,” the prime minister said.

Modi’s comments take on added significance following Trump’s aggressive trade measures, which include the imposition of an additional 25 per cent duty on Indian products entering the US market starting August 7. Trump has also announced a vague but serious penalty for India’s continued purchase of Russian crude oil and defense equipment. Previously, the additional tariff was scheduled to take effect from August 1, but the date was revised without explanation.

The US move is widely interpreted as a pressure tactic, especially since Washington has recently signed favourable trade deals with Japan, the UK, and the European Union. India, however, has taken a firm stance against several US demands, particularly those concerning the inclusion of American agricultural goods, dairy products, and genetically modified foods in a proposed bilateral trade agreement.

Commerce Minister Piyush Goyal responded in Parliament by highlighting India’s robust economic performance. “India is the world’s fastest-growing major economy and is widely expected to be the third largest in the coming years,” he said. Goyal also added that India will take all necessary measures to safeguard its national interest, and that the implications of the new US tariffs are being closely examined.

During his address, Prime Minister Modi also spoke extensively about the government’s efforts in supporting farmers, reiterating that every policy is aimed at empowering them and improving their livelihoods. He described the promotion of Swadeshi as not only an economic strategy but a moral and national imperative. “This is not just about Modi saying it,” he declared, “every Indian should say this every political party and every leader must keep aside their differences and work together in national interest.”

As India navigates these new global economic challenges, Modi’s speech served as both a call to unity and a reaffirmation of self-reliance in the face of external pressures.