Apr-Jun GDP
Modi takes jibe at slowdown in major econs after India's robust Q1 GDP print
This story was originally published at 19:45 IST on 2 September 2025
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NEW DELHI - Lauding India's robust Apr-Jun GDP growth print of 7.8%, Prime Minister Narendra Modi Tuesday took a jibe at major economies, saying "many of the world's economies are facing uncertainty and challenges due to their own economic selfishness". "Yet, in this environment, Bharat has achieved a remarkable growth rate of 7.8%," Modi said while speaking at the Semicon India Conference here.
India's GDP grew more than expected at a five-quarter high of 7.8% in Apr-Jun, led by higher growth in services and manufacturing sectors, according to data released by the statistics ministry on Friday. The Indian economy had grown 7.4% in the March quarter and 6.5% in the year-ago quarter. "The GDP numbers for the first quarter of this year have once again proven that Bharat has performed beyond every expectation and estimate," Modi said, adding that growth was visible across all sectors. "With this momentum, we are well on our way to becoming the world's third-largest economy," the prime minister said.
His comments on major economies facing uncertainties assume significance against the backdrop of US President Donald Trump calling the Indian economy a "dead economy" in the recent past. During the same period, US GDP growth was less than half of India's at 3.3%.
Taking the US' average effective tariff on the world to its highest level in almost a century, Trump has imposed sweeping reciprocal tariffs on trading partners to bring manufacturing back to the US, shore up federal revenues, and lower trade deficits. While his tariffs have varying impact on world economies, they also impact the US economy which is already beginning to see a rise in consumer prices of various products, adding to inflationary pressures.
The Indian economy, particularly exports and capital formation, faces risks from the imposition of tariffs by the US. Citing displeasure over the high trade gap, the US has imposed 25% reciprocal tariffs on India, with an additional 25% as punitive tariff for trading with Russia. US' higher tariffs on India result in a pricing disadvantage of 30–35% for Indian exports, making them less competitive compared to those from China, Vietnam, Cambodia, the Philippines, and other Southeast and South Asian countries. The US accounts for nearly 20% of India's total exports.
In 2024-25 (Apr-Mar), India exported goods worth $86.51 billion to the US and had a trade surplus of $40.82 billion. If sustained, the 50% tariff could hurt India's growth by nearly half a percentage point. End
Reported by Priyasmita Dutta
Edited by Avishek Dutta
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