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India's economy grew at 7.8 per cent in the first quarter of 2025, exceeding expectations despite global uncertainties and challenges arising from economic self-interest. Prime Minister Shri Narendra Modi highlighted that growth was visible across all major sectors, including manufacturing, services, agriculture, and construction, reflecting increased energy and activity in industries and among citizens. India has remained the fastest-growing major economy, outpacing China, while the US economy grew by 3.3 per cent. The Prime Minister also hinted at a new phase of next-generation reforms, including possible cuts in the goods and services tax on widely used products.
Prime Minister Shri Narendra Modi addressed the Semicon India 2025 conference, highlighting India's 7.8 per cent GDP growth in the first quarter, noting that it surpassed all expectations, hopes, and estimates. He explained that this achievement came despite global uncertainties and challenges rooted in economic self-interest. Advertisement
Modi pointed out that India's performance demonstrates resilience, as the country continues to grow while other economies face significant hurdles. He emphasized that growth is visible across sectors, including manufacturing, services, agriculture, and construction, and described an evident sense of enthusiasm and momentum in both industries and among citizens.
The Prime Minister affirmed that India's economic trajectory is rapidly moving the country toward becoming the world's third-largest economy. He did not elaborate on specific challenges but spoke amid rising tensions with the United States, which recently imposed additional tariffs on Indian goods following India's purchase of Russian oil. These tariffs now total 50 per cent, marking the highest rate globally.
In response to previous comments dismissing India's economy as 'dead,' Modi highlighted that India continues to be the world's fastest-growing major economy, consistently outpacing China. In comparison, the US economy grew at 3.3 per cent during the same period. Recent US statements have criticized India's energy imports, but India's growth remains steady and robust.
Modi also mentioned that the government is preparing to launch a new phase of next-generation reforms. While he did not provide full details, these reforms are expected to include significant adjustments to the goods and services tax (GST), potentially reducing rates on a wide range of commonly used products, from consumer electronics to hybrid vehicles and everyday essentials. The GST Council is scheduled to meet for two days in New Delhi to discuss these proposed changes.
Since early 2025, the US administration has pursued a global tariff program, increasing rates on imports from several countries, including India and Brazil, to protect American manufacturing and jobs. While intended to benefit domestic industries, these policies have contributed to global economic disruption.
Source PTI
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