India is firmly on the path to becoming the world’s third-largest economy, Prime Minister Mr. Narendra Modi declared during a recent public address in Varanasi, his parliamentary constituency. His remarks come at a time of mounting global economic uncertainty, with shifting alliances, protectionist trade moves, and geopolitical tensions shaking the foundations of global commerce.

Speaking at a large public gathering, the Prime Minister issued a renewed call for Swadeshi, urging Indian citizens, businesses, and political stakeholders to intensify their support for indigenous products. According to Modi, India’s economic destiny depends on how vigorously it can sustain and scale local production, promote self-reliance, and preserve its national interests amid a turbulent global landscape.

Vocal for Local: Modi's Economic Call to Action

In his speech, PM Modi stressed the importance of self-reliance, particularly during this volatile phase in international trade and economic policy.

"Every citizen should ask themselves — was this product made by an Indian? Can I support an Indian worker, farmer, or entrepreneur by buying this? That’s the essence of Swadeshi," said Modi.

He urged traders and shopkeepers across the country to take a pledge to sell only Indian-made goods, reiterating the now-familiar slogan “Vocal for Local.”

This campaign, originally emphasized during the pandemic years, appears to be central once again in India’s strategy for economic growth in 2025 and beyond. The Prime Minister declared that only a deeply rooted Swadeshi sentiment, present in every economic transaction and consumer decision, would help India achieve its dream of becoming a developed nation.

Trade Tensions with the United States

The timing of PM Modi’s speech coincides with a notable development in India-US trade relations. The United States President recently announced a 25% import duty on Indian goods, along with an unspecified penalty over India’s continued purchase of crude oil and military equipment from Russia.

The US administration labelled India's trade practices as “most strenuous and obnoxious,” a statement that has drawn sharp reactions from India’s political and business community.

According to diplomatic sources, this tariff hike is widely interpreted as an attempt to push India into making concessions in the long-pending bilateral trade agreement, particularly regarding US agricultural products, dairy items, and genetically modified (GM) foods.

India’s Response: Standing Firm Amid Pressure

India has responded firmly to these developments. Commerce Minister Mr. Piyush Goyal, speaking shortly after the announcement, stated:

“India is the world’s fastest-growing major economy, and we remain committed to protecting our national interests. We are carefully assessing the implications of the US tariffs and will take all necessary steps in response.”

He reiterated India’s commitment to strategic autonomy and reminded international partners that India’s market size, demographic dividend, and economic fundamentals make it an indispensable part of the global economic ecosystem.

India has also been intensifying its bilateral trade ties with other nations, including the UAE, Russia, Japan, and European partners, to offset any overdependence on a single country or bloc.

India's Macroeconomic Landscape: A Surge in Manufacturing

Recent economic indicators support Modi’s optimistic projection. As reported earlier this month, the HSBC India Manufacturing Purchasing Managers’ Index (PMI) hit a 16-month high of 59.1 in July 2025, reflecting a surge in factory orders and robust production output.

The report, compiled by S&P Global, highlighted increased output in intermediate goods, moderate inflation, and increased pricing power for Indian firms — further reinforcing the positive outlook for Indian manufacturing.

Inventory restocking trends, stable hiring despite competitive pressure, and strong domestic and export demand have all contributed to the resilient manufacturing performance.

Swadeshi 2.0: Cultural Nationalism Meets Economic Strategy

Modi’s emphasis on Swadeshi is not just economic—it is also cultural and strategic. It hearkens back to India’s freedom struggle, where the Swadeshi movement played a central role in rallying people against British colonial economic exploitation.

In the current geopolitical scenario, this movement has been recast as a modern tool for economic resistance, strategic autonomy, and national pride.

India, according to PM Modi, must become not just economically self-reliant, but also a net exporter of value-added goods, rather than relying on imported products or raw material exports.

The Prime Minister also signalled that government procurement policies, tax structures, and incentives for MSMEs (Micro, Small and Medium Enterprises) will be increasingly aligned to support Indian-made goods.

Conclusion: A Defining Economic Moment for India

India stands at a defining moment in its economic journey. With its GDP growth, manufacturing strength, and global partnerships in alignment, the dream of becoming the third-largest economy in the world appears more tangible than ever.

However, this path is not without its challenges. The US tariffs, inflationary pressures, global commodity volatility, and geopolitical frictions will test India’s resilience.

PM Modi’s speech reflects an understanding that national unity, consumer awareness, and economic nationalism will be just as important as fiscal or trade policy in meeting India’s goals.

If India can strike a balance between domestic self-reliance and global engagement, it may well achieve its ambition of entering the top-three global economies, not as a reactive power, but as a decisive economic leader of the 21st century.

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