PM Modi Says 'India On Way To Becoming 3rd Biggest Economy'; Counters Trump's 'Dead Economy' Remark

Reaffirming the resilience of the Indian economy, a day after US President Donald Trump's 'dead economy' remark, Prime Minister Narendra Modi on Saturday asserted that the country is on track to become the world’s third-largest economy, despite the global economic instability.

"The world economy is facing instability and uncertainty. In such times, countries are focusing solely on their own interests. India, too, is on the path to becoming the world's third-largest economy and must remain alert to its own economic priorities", PM Modi said, addressing a public meeting in his parliamentary constituency Varanasi.

A day before, taking a dig at India and Russia for sharing close ties, Trump said that the two countries can take their "dead economies down together". The controversial remark came after imposing a 25 per cent tariff on India, citing the nation's close ties with Russia.

What All Did PM Modi Say?

Stressing that India must remain vigilant about its economic interests, PM Modi also made a strong pitch for ‘swadeshi’ products, calling it the "true service to the nation".

Further underscoring the "atmosphere of global instability", PM Modi asserted that the government is doing everything necessary to serve the country’s best interests.

"As we talk about economic progress, I want to draw your attention to the current global scenario. The world economy is facing instability and uncertainty. In such times, countries are focusing solely on their own interests. India, too, is on the path to becoming the world's third-largest economy and must remain alert to its own economic priorities", he said.

The prime minister's renewed push for 'swadeshi' (indigenous) comes amid the US announcing tariffs on exports from about 70 nations, including India.

“There is an atmosphere of global instability. All countries are focusing on their individual interests. India is going to become the third biggest economy in the world, and that is why India will have to stay alert as far as its economic interests are concerned,” PM Modi said at a rally in Varanasi.

He added, “Our government is doing everything it can in the best interest of the country... Those who want the best for the country and want to see India as the third biggest economy in the world, be it any political party, should leave their differences aside and instil a resolution for 'swadeshi' products”

“We will buy only those things that are made by Indians. We need to become vocal for local,” the Prime Minister stressed.

Trump's Tariff And 'Dead Economy' Jibe

Signing a fresh executive order on Thursday, Trump imposed new reciprocal tariffs ranging from 10 per cent to 41 per cent on over 70 countries. The move was in line with his firm stand on 'long-standing imbalances in trade practices'. According to the updated tariff rates outlined in the executive order, Indian imports will face a 25 per cent tariff.

Launching a scathing attack on New Delhi’s ties with Moscow, he dismissed both nations as 'dead economies'. "I don't care what India does with Russia. They can take their dead economies down together, for all I care," Trump posted on social media.

India-US Tariff Tensions

The development came amid the rising tensions between India and the US over the revised tariff rates. Lately, India and the US have been negotiating a Bilateral Trade Agreement (BTA), which was launched in February 2025 during Prime Minister Narendra Modi’s visit to the White House.

Although Trump described India as a 'friend', he criticised the country for having “among the highest tariffs in the world” and “the most strenuous and obnoxious non‑monetary trade barriers of any country”, which he argued have hindered U.S.–India commerce over the years.

"India has been a good friend, but India has charged basically more tariffs than almost any other country. You just can't do that", Trump told reporters, as per media reports.