PM Modi Vows India Will Soon Become World’s 3rd Largest Economy Amid US Trade Tensions
At a time when global trade relations are being tested, Prime Minister Narendra Modi has sent out a strong and confident message: India is on track to become the world’s third-largest economy very soon. Speaking at the India-Japan Economic Forum in Tokyo, Modi made a powerful pitch to investors, underlining India’s growth story and its strategic position as a bridge to the Global South.
Confidence in India’s Growth Story
Modi’s remarks came just weeks after former U.S. President Donald Trump lashed out at India, describing its economy as “dead” while announcing additional tariffs on Indian goods. But instead of letting this criticism weigh India down, Modi used his Tokyo visit to showcase the country’s economic strengths and investment potential.
“Japanese companies have invested more than $40 billion in India. In the last two years alone, $13 billion has flowed in,” Modi highlighted. Citing reports by Japanese agencies like JBIC (Japan Bank of International Cooperation) and JETRO (Japan External Trade Organisation), he pointed out that India is now ranked as the most promising investment destination, with 80% of Japanese companies planning to expand and 75% already operating profitably.
“In India, capital does not just grow, it multiplies,” Modi said, making it clear that the country’s economic environment is not just safe but highly rewarding.
Japan Steps Up Investment Plans
Japan, in turn, has responded with strong support. Welcoming Modi, Japanese Prime Minister Shigeru Ishiba announced a ¥10 trillion private investment target for India over the next decade. This move is expected to deepen bilateral economic ties and create new opportunities in sectors ranging from infrastructure and technology to renewable energy.
The two leaders also unveiled a range of new initiatives, including the India-Japan AI Initiative and the Economic Security Initiative. These are designed to boost cooperation in critical areas such as pharmaceuticals, critical minerals, new technologies, and supply chain resilience — all vital in today’s turbulent global trade environment.
Strengthening Small Businesses and Innovation
Recognizing the importance of small businesses, India and Japan also launched the India-Japan SME Forum, a new platform to promote collaboration between small and medium enterprises. This is likely to benefit startups and innovators on both sides, especially in emerging industries such as robotics, semiconductors, and green technology.
Modi also called for India and Japan to replicate the success of their partnership in the auto industry in new sectors like batteries, shipbuilding, nuclear energy, and advanced robotics.
Focus on Green Energy and People-to-People Ties
Another highlight of the summit was the announcement of a Joint Credit Mechanism aimed at financing green energy projects. With climate change and sustainability becoming global priorities, both countries are looking to lead the way in renewable energy cooperation.
To strengthen cultural and human ties, an action plan was also adopted to facilitate the two-way movement of 5 lakh people between India and Japan over the next five years. This exchange will not only boost employment and education opportunities but also bring the two nations closer socially and culturally.
The Bigger Picture
Modi’s strong words in Tokyo come against the backdrop of heightened tensions with the U.S. over tariffs and India’s crude oil imports from Russia. Trump’s swipe about “dead economies” was clearly aimed at undermining India’s rising global profile. But Modi’s address and Japan’s firm backing send a different signal — that India remains a rising power, capable of attracting major investments, forming strategic partnerships, and confidently positioning itself on the global stage.
As India continues its economic journey, the message from Tokyo is loud and clear: India is open for business, growing faster than many global peers, and determined to take its rightful place as the world’s third-largest economy.
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