Taking the global stage head-on, Prime Minister Narendra Modi on Saturday asserted that India is on track to become the world’s third-largest economy, but warned the country must remain watchful of its national interests in a rapidly shifting global economic order.
Speaking at a public meeting in his Lok Sabha constituency of Varanasi, Modi called for renewed economic resolve as the country navigates a turbulent international climate, marked by rising protectionism and geopolitical uncertainty.
“India is set to become the world’s third-largest economy… therefore, India must remain vigilant about its economic interests. Our farmers, our small industries, employment for our youth… their interests are paramount for us. The government is making every effort in this direction,” said Modi.
The remarks follow an online outburst by US President Donald Trump, who branded India a “dead economy” and imposed a 25 per cent tariff on nearly all Indian imports into the United States. Trump also hinted at penalties over India’s continued defence and energy ties with Russia.
“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,” the US President posted on Truth Social.
Back home, the political ripple was immediate. Congress leader Rahul Gandhi seized upon Trump’s remark, stating, “I am glad President Trump has stated a fact. Everyone knows the Indian economy is a dead economy, everyone except the Prime Minister and Finance Minister.”
However, Gandhi’s assertion was not universally shared within the Opposition. Several allies and party members distanced themselves from the remark.
Also read: PM Modi renews push for ‘Swadeshi’ goods
Commerce Minister Piyush Goyal, speaking in Parliament, dismissed the “dead economy” tag and stressed that India is currently the fastest-growing major economy. He traced India’s rise from the ‘Fragile Five’ to a top-five global economic power.
“In less than a decade, India came out of ‘Fragile Five’ economies and it has now become the fastest-growing economy of the world… from the 11th largest economy to the top five,” said Goyal. “It is expected that we will be the third largest economy in a few years. Today, global institutions and economists see India as a bright spot in the global economy.”
Modi, meanwhile, used the Varanasi stage to push the message of economic self-reliance and national production. Echoing his government’s ‘Vocal for Local’ campaign, the prime minister urged citizens, political parties, and traders to unite behind Swadeshi products.
“Our government is doing everything it can in the best interest of the country. Those who want the best for the country and want to see India as the third biggest economy in the world, be it any political party, should leave their differences aside and instil a resolution for ‘Swadeshi’ products,” Modi said.
“We will buy only those things that are made by Indians. We need to become vocal for local,” he added.
While the government downplayed Trump’s comments as pressure tactics, officials signalled that India will not compromise on its sovereign trade and energy decisions. The country continues to push back against demands for broader market access in sensitive areas such as agriculture and dairy products, as part of ongoing trade talks.
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