In a strong rebuttal to President Donald Trump’s recent declaration of India as a “dead economy,” Prime Minister Narendra Modi has unequivocally asserted India’s robust economic health and called for a nationwide “Vocal for Local” movement. The sharp exchange comes as Trump imposes a 25% tariff on Indian goods, citing high Indian tariffs and India’s continued trade with Russia.
Speaking passionately in Varanasi, his parliamentary constituency, Prime Minister Modi emphasized that the Indian economy is “strong, stable, and surging ahead.” He confidently reiterated India’s trajectory to become the world’s third-largest economy, urging every Indian, irrespective of political leanings, to champion ‘swadeshi’ (made in India) products. “We will buy only things made by Indians,” Modi declared, advocating for a renewed focus on supporting domestic industries. He highlighted the current global instability, underscoring the critical need for India to remain vigilant about its economic interests.
Trump’s provocative remarks and the imposition of a 25% tariff on Indian imports, along with a potential “penalty” for India’s energy and military purchases from Russia, have ignited a fresh wave of trade tensions. This move targets key Indian export sectors including apparel, pharmaceuticals, gems and jewelry, and petrochemical products, impacting an estimated $87 billion in Indian goods.
However, official data paints a different picture of India’s economic standing. India is widely recognized as the fastest-growing major economy globally. The Indian GDP grew by an estimated 6.5% in FY 2024-25, showcasing consistent performance despite global uncertainties. Over the past decade, India has surged from the 11th to the 5th largest economy, with projections placing it firmly on track to become the 3rd largest. Foreign Direct Investment (FDI) inflows have also seen a significant increase, reaching $81.04 billion in FY 2024-25, more than doubling in ten years and reflecting strong global investor confidence.
Beyond the Prime Minister, other Indian officials have also swiftly countered Trump’s assertions. Commerce Minister Piyush Goyal, for instance, affirmed India’s rapid growth in Parliament, emphasizing the nation’s economic rise. The Ministry of External Affairs (MEA) has also underscored the enduring nature of the India-US partnership, stating that it has “weathered several transitions and challenges” and remains focused on a substantive agenda. The MEA reiterated India’s stance on its independent foreign policy, particularly concerning energy and defense procurements, asserting that these are determined solely by national security imperatives.
The “Vocal for Local” initiative, initially launched in May 2020 as part of the broader ‘Atmanirbhar Bharat Abhiyaan’ (Self-reliant India campaign), is gaining renewed traction. This initiative aims to foster economic self-reliance by promoting domestic manufacturing and supporting local businesses, particularly MSMEs. By encouraging consumers to prioritize Indian-made goods, the government seeks to boost local production, create employment opportunities, and enhance market access for indigenous products.
As trade negotiations between India and the US continue amidst these new tariffs, India’s steadfast commitment to protecting its national economic interests remains paramount. The call for ‘swadeshi’ serves as a clear message of resilience and self-reliance in the face of external pressures.
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