Amid the mounting trade tensions between India and the United States, Prime Minister Narendra Modi on Tuesday underscored India’s economic prowess, stating that the country’s GDP grew 7.8 per cent in the first quarter despite global uncertainties and challenges driven by economic self-interest.
His remark is seen as a veiled response to US President Donald Trump, who had termed the Indian economy “dead”.
"Once again, India has outperformed every expectation, every estimate, and every forecast," Modi said at the Semicon India 2025 conference in Delhi.
The prime minister noted that India’s growth is visible across all sectors—manufacturing, services, agriculture, and construction—with enthusiasm evident everywhere.
This trajectory of growth is propelling India swiftly towards becoming the third-largest economy in the world, he affirmed.
Modi’s remarks assume significance amid the raging trade war between India and the United States after President Donald Trump imposed a 50 per cent tariff on Indian goods, citing New Delhi’s continued import of cheap Russian oil.
#WATCH | At Semicon India 2025, Prime Minister Narendra Modi says, "It is said in the semiconductor world that oil was black gold, but chips are digital diamonds. Our last century was shaped by oil... But the power of the 21st century is limited to a small chip. This chip has the… pic.twitter.com/EXKQDOzc3e
— ANI (@ANI) September 2, 2025
As the tension raged, Trump dismissed India’s and Russia’s economies as “dead”.
Inaugurating the Semicon India conference, Modi claimed that the days are not far when the smallest chip made in India will drive the biggest change in the world. The government is working on the next phase of India Semiconductor Mission and Design-Linked Incentive Scheme, he said.
VIDEO | Delhi: PM Narendra Modi (@narendramodi) inaugurates Semicon India 2025 at Yashobhoomi. While addressing the gathering, he says, “I returned last night after visiting Japan and China... are you clapping because I went, or because I came back? Today, I am here at… pic.twitter.com/MsWJ3SeRdR
— Press Trust of India (@PTI_News) September 2, 2025
Noting that the base of digital infrastructure is critical minerals, the prime minister said India has started working on the critical minerals mission and is committed to meeting the growing demand for rare earth minerals.
The three-day conference will focus on advancing a robust, resilient, and sustainable semiconductor ecosystem in India. It will feature sessions on the progress of the Semicon India Programme, semiconductor fab and advanced packaging projects, infrastructure readiness, smart manufacturing, innovations in R&D and artificial intelligence, investment opportunities and state-level policy implementation, according to a statement from the Prime Minister’s Office.
The conference will highlight initiatives under the Design Linked Incentive (DLI) scheme, the growth of the startup ecosystem, international cooperation, and the future roadmap for India’s semiconductor sector.
More than 2,500 delegates from over 48 countries attended the event which also included round-table discussions, country pavilions and dedicated pavilions for Workforce Developmentand Start-Ups among others.
