India on path to becoming world's third-largest economy, says PM Modi

Business Standard

a day ago

Asserting that India is on the path to becoming the world's third-largest economy, Prime Minister Narendra Modi said on Saturday that the country must remain alert to its own economic priorities amid the instability and uncertainty facing the world economy.
PM Modi's remarks came just days after US President Donald Trump called India a "dead economy" after announcing a 25 per cent tariff on the import of Indian goods along with an unspecified "penalty" for buying Russian military equipment and crude oil.
Addressing a public meeting in his parliamentary constituency Varanasi on Saturday, Modi said, "As we talk about economic progress, I want to draw your attention to the current global scenario.
"The world economy is facing instability and uncertainty. In such times, countries are focusing solely on their own interests. India, too, is on the path to becoming the world's third-largest economy and must remain alert to its own economic priorities." The prime minister also made a renewed push for 'Swadeshi', stressing that every party, leader and citizen must work to promote indigenous goods if "we want India to become the third-largest economy".
Making a special appeal to traders and shopkeepers, the prime minister said, "At a time when the world is going through uncertainty, let us take a pledge to sell only Swadeshi goods from our shops and markets. Promoting made in India goods will be the truest service to the country." He also urged people to be conscious consumers, saying, "Whatever we buy, we should ask ourselves -- has an Indian toiled to make this? If it has been made by the sweat of our people, with their skills, that product is Swadeshi for us. 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. Only through collective effort can we fulfil the dream of a developed India," Modi said.
The prime minister, who was addressing a massive public gathering on Saturday in Banauli village, highlighted the government's farmer-centric policies in detail.
He said the government is constantly working for the well-being of farmers.
Calling for a national movement to support local products, the prime minister said, "This is not just about Modi saying it, every Indian should say this -- if we want India to become the third-largest economy, every political party and every leader, keeping aside their hesitations, must work in the nation's interest and awaken the spirit of Swadeshi among the people." The US tariff action is being seen as a pressure tactic to get New Delhi to agree to demands made by the US, which has, in recent days, got favourable trade deals with major partners like Japan, the UK and the European Union.
India has especially toughened its stance on extending duty concessions on agri products, dairy and GM foods in the proposed bilateral trade agreement (BTA) with the US.
With the US not able to finalise a deal with India so far, Trump on Thursday announced the imposition of an additional 25 per cent import duty on Indian goods entering American markets from August 7.
Earlier, this duty was to be imposed from August 1. The President has also not specified the penalty that he announced against India for buying crude oil and military equipment from Russia.
In the backdrop of Trump's "dead economy" barb at India, Commerce Minister Piyush Goyal had told Parliament on Thursday that India is the world's fastest-growing major economy and widely expected to be the "third largest economy" in a few years.
Goyal also said India will take all necessary steps to safeguard and promote national interest and that the implications of the US tariffs are being examined.
In a post on Truth Social, Trump had said, "I don't care what India does with Russia. They can take their dead economies down together, for all I care.
"We have done very little business with India, their Tariffs are too high, among the highest in the World." His remarks were echoed by Congress leader Rahul Gandhi who said President Trump has stated a "fact", prompting a strong condemnation from the BJP.
While announcing the tariff, Trump described India's trade policies as "most strenuous and obnoxious".