'7.8% GDP growth despite...': PM Modi takes veiled dig at Trump's tariffs against India

Prime Minister Narendra Modi on Tuesday appeared to take a dig at the US tariffs slapped on India for its continued purchase of Russian oil. PM Modi said that India has been performing better than expectations at a time when the world economy is faced with "challenges created by economic selfishness". 

In August this year, US President Donald Trump imposed 50 per cent tariffs on Indian goods. This comprises 25 per cent tariffs on Indian imports and an additional penalty of 25 per cent on India's purchases of Russian oil. 

The Prime Minister was speaking at the ongoing Semicon India 2025 in Delhi.  "Once again, India has performed better than every expectation, every assessment. At a time when there are concerns in the economy of the world, there are challenges created by economic selfishness; in that environment, India has achieved a growth of 7.8 per cent," Modi said. 

India's economy logged an unexpected growth of 7.8 per cent year-on-year (YoY) in the April-June quarter versus 7.4 per cent in the previous 3 months, as per government data. GDP growth in April-June has been the highest in 5 quarters, before the US imposed tariffs on Indian goods.

Modi's comment comes almost a day after Trump claimed that India has offered to cut all tariffs to 'nothing', while adding that it is 'too late now'. 

“What few people understand is that we do very little business with India, but they do a tremendous amount of business with us… They sell us massive amounts of goods… but we sell them very little,” Trump wrote in a post on Truth Social.

“Until now a totally one-sided relationship, and it has been for many decades.” He further said that American businesses have been blocked out of the Indian market due to what he claims are the most severe tariffs of any country. Furthermore, Trump highlighted India's reliance on Russian oil and defence imports. 

"Also, India buys most of its oil and military products from Russia, very little from the US. They have now offered to cut their tariffs to nothing, but it's getting late. They should have done so years ago. Just some simple facts for people to ponder!!!" Trump wrote.