Modi Declares India on Course to Become Third-Largest Economy

Prime Minister Narendra Modi declared on August 5, 2023, that India is on track to become the world’s third-largest economy. Speaking at a public meeting in his parliamentary constituency of Varanasi, Modi emphasized the importance of prioritizing India’s economic interests amid global uncertainty.

Modi’s comments followed a recent statement by US President Donald Trump, who labeled India a “dead economy” after announcing a substantial 25% tariff on Indian imports. This tariff, along with a penalty for purchasing Russian military equipment and oil, has escalated tensions between the two countries. Modi urged citizens to remain focused on domestic economic progress despite external pressures.

In his address, Modi drew attention to the current global economic landscape, stating, “The world economy is facing instability and uncertainty. In such times, countries are focusing solely on their own interests.” He asserted that India must ensure it remains vigilant about its economic priorities while aspiring to achieve its goal as a leading global economy.

Modi reiterated the significance of the Swadeshi movement, which emphasizes the promotion of indigenous products. He appealed to traders and shopkeepers to commit to selling local goods, saying, “Promoting made in India goods will be the truest service to the country.” He encouraged consumers to consider the origins of their purchases, urging them to ask whether an Indian worker had contributed to the product’s creation.

“The feeling of Swadeshi in every action will define our future,” Modi stated, linking this initiative to a tribute to Mahatma Gandhi. His message was clear: collective effort is vital for realizing the dream of a developed India.

During the gathering in Banauli village, Modi elaborated on the government’s initiatives aimed at supporting farmers, highlighting the administration’s commitment to their welfare. He called for a national movement focused on local products, emphasizing that every political party and leader should set aside differences and work towards this common goal.

The backdrop to Modi’s remarks includes growing tensions in trade relations with the United States. The US tariff on Indian goods is perceived as a tactic to pressure India into agreeing to US demands regarding agricultural products and trade agreements. India’s government has resisted extending duty concessions on agricultural exports in ongoing negotiations.

On August 7, 2023, the new tariff will take effect, a delay from the initially planned date of August 1. Trump has not yet clarified the specifics of the penalties related to India’s dealings with Russia, further complicating the relationship between the two nations.

In response to Trump’s criticisms, Piyush Goyal, India’s Commerce Minister, reaffirmed in Parliament that India is the fastest-growing major economy and is expected to become the third largest in the near future. He stressed that the government would take necessary actions to protect national interests and that the implications of the US tariffs are being closely monitored.

Trump’s comments on social media reflected his frustrations, stating, “I don’t care what India does with Russia. They can take their dead economies down together.” His remarks have drawn both criticism and support within India, with some political figures, including Congress leader Rahul Gandhi, echoing Trump’s sentiments while facing backlash from the ruling Bharatiya Janata Party (BJP).

The ongoing trade disputes highlight the complexities of international relations and economic strategy as India seeks to solidify its position on the global stage. Modi’s emphasis on self-reliance through the Swadeshi movement may play a crucial role in shaping India’s economic future, particularly in the face of external challenges.