Prime Minister Narendra Modi highlighted India's impressive 7.8% GDP growth in the first quarter of the current financial year, despite global economic challenges and what he termed "economic selfishness". This remark, made at the Semicon India 2025 event in New Delhi on Tuesday, September 2, 2025, is widely interpreted as a veiled criticism of protectionist trade policies and tariffs imposed by other nations.
Modi emphasized that India's strong economic performance comes at a time when the world economy is facing concerns and difficulties. He suggested that if India maintains its current economic momentum, it will accelerate its trajectory toward becoming the world's third-largest economy.
The Prime Minister's statement can be viewed in light of recent trade tensions, particularly the tariffs imposed by the United States. These tariffs, which include a 50% levy on certain Indian exports, have been interpreted as a consequence of India's continued purchase of Russian oil, which the U.S. claims is indirectly funding the war in Ukraine.
Despite these external pressures, India's economy has demonstrated resilience. The 7.8% GDP growth exceeds expectations and assessments, showcasing the country's economic potential. This growth is particularly noteworthy considering the global semiconductor market, which is valued at around $600 billion and is projected to surpass $1 trillion in the coming years. Modi underscored India's potential in this market, referring to chips as "digital diamonds" and asserting their power to drive global progress.
The Semicon India program, which began in 2021, has played a crucial role in boosting the semiconductor industry. The program has facilitated the approval of semiconductor plants and projects, attracting over ₹1.5 lakh crore in investments. Moreover, the implementation of the National Single Window System has streamlined the approval process for investors. During the Semicon India 2025 event, Union Minister for Electronics and Information Technology Ashwini Vaishnaw presented PM Modi with India's first "Made in India" semiconductor chip, developed by the Indian Space Research Organisation’s Semiconductor Lab.
PM Modi's address at the Semicon India 2025 event served as a platform to highlight India's economic achievements and its growing prominence in the global semiconductor market. By emphasizing the challenges posed by "economic selfishness," he subtly criticized protectionist measures while reaffirming India's commitment to economic growth and self-reliance.
