Amid Trump Tariffs, PM Modi Says India Will "Very Soon" Become World's Third Largest Economy

Prime Minister Narendra Modi on Friday (29 August) declared that India will “very soon” become the world’s third-largest economy, reported The Hindu.

This comes amid trade tensions between India and US after Trump administration imposed steep 50 per cent tariffs on New Delhi.

Speaking at the India-Japan Economic Forum in Tokyo, he said, "You are all familiar with the remarkable changes India has experienced in the last eleven years. Today, we have political and economic stability, and clear and predictable policies. India is now the fastest-growing major economy in the world, and very soon, it will become the world’s third-largest economy".

"India is contributing to 18 per cent of global growth. The country’s capital markets are giving good returns, and we have a strong banking sector. Inflation and interest rates are low, and foreign exchange reserves stand at around $700 billion," he added.

“Japanese companies have invested more than $40 billion in India. In the last two years alone, there has been private investment of $13 billion. JBIC (Japan Bank of International Cooperation) says India is the most ‘promising’ destination. JETRO (Japan External Trade Organisation) says 80 per cent of companies want to expand in India, and 75 per cent are already profitable,” the Prime Minister said, adding, “Which means, in India, capital does not just grow, it multiplies.”

PM Modi and Japanese Prime Minister Shigeru Ishiba launched initiatives on Artificial Intelligence, supply chain resilience, SMEs, and green energy financing.

Reflecting their bilateral commitment to the Indo-Pacific region, the two nations issued a Joint Declaration on Security Cooperation, emphasising "the indispensable role" of India and Japan in a "free, open, peaceful, prosperous, and coercion-free Indo-Pacific region."

The summit produced 13 outcomes, including MoUs on a Joint Credit Mechanism for green energy and cooperation in critical minerals. They also announced an exchange of five lakh people, including 50,000 skilled workers from India to Japan.

Highlighting reforms, PM Modi said India had opened sensitive sectors like defence, space, and now nuclear energy.

“The world is not just watching India, it is counting on India,” he asserted.

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