India’s economy has demonstrated remarkable resilience, achieving a robust 7.8% GDP growth in the first quarter of the current fiscal year despite facing significant global challenges. Prime Minister Narendra Modi, speaking at the Semicon India 2025 conference, attributed this performance to the nation’s strong fundamentals and a strategic policy approach, while also taking a veiled jab at “economic selfishness” in the global economy.
Overcoming External Challenges
In his address, PM Modi underscored that India’s impressive growth rate was achieved at a time when the world economy is facing concerns and challenges from what he termed as “economic selfishness,” widely interpreted as a reference to protectionist trade policies, particularly the tariffs imposed by the U.S. on Indian goods. He emphasized that the nation’s economic performance has “exceeded every expectation and assessment,” signaling that India’s growth story is not just resilient but also on a path of accelerating momentum.
A Vision for a Self-Reliant Economy
The Prime Minister’s remarks highlighted the government’s focus on building a self-reliant and full-stack semiconductor nation. He proclaimed that the day is not far when the world will say, “Designed in India, Made in India, and Trusted by the World.” This vision is central to the government’s efforts to position India as a key player in the global supply chain, moving beyond a backend role to becoming a leader in technology and manufacturing.
The government’s push for initiatives like the India Semiconductor Mission and the Design-Linked Incentive Scheme are aimed at fostering a robust domestic ecosystem for chip design and manufacturing. Modi’s speech came just a day after the first made-in-India chip, the Vikram 32-bit processor developed by ISRO, was presented to him, a symbolic step in the country’s journey towards technological self-reliance.
Economic Highlights and Outlook
The 7.8% GDP growth in the April-June quarter is the fastest in five quarters, driven by strong performances in the manufacturing, construction, and services sectors. Private consumption and government expenditure have also played a crucial role in boosting this growth. While some economists have cautioned that this pace may not be sustained due to fading base effects and the impact of the U.S. tariffs, the government remains optimistic. The impressive numbers have solidified India’s position as the fastest-growing major economy in the world, and according to Modi, nothing can stop India’s journey to becoming the world’s third-largest economy.
