Prime Minister Narendra Modi on Friday highlighted India’s political and economic strength, stressing that the country is well-positioned to soon become the world’s third-largest economy.

Speaking at the India-Japan Economic Forum in Tokyo, Modi underlined India’s stability, transparency, and strong growth. His remarks came just two days after the United States doubled tariffs on Indian goods, raising duties up to 50 per cent. Washington linked the move to India’s purchase of Russian oil, which economists warn could impact growth and employment.

India’s Economic Growth Story

Modi described India as the fastest-growing major economy. He said, “Today, India has political stability, economic stability, transparency in policy, and predictability. Today, India is the fastest-growing major economy in the world. And, very soon, it is going to become the third largest economy in the world.”

He added that India’s markets are delivering strong returns, and reforms over the past 11 years have boosted global contribution. “We contribute 18% to global GDP, and our markets are delivering strong returns. Our approach of reform, transform, and perform is driving all this progress,” he explained.

Citing data from JETRO, Modi said international businesses see India as a profitable hub. “JETRO (Japan External Trade Organisation) says that 80 per cent of companies want to expand in India. Seventy-five per cent of companies are making profits. In India, capital does not just grow, it multiplies.”

India-Japan Partnership

Shifting focus to New Delhi’s ties with Tokyo, Modi called the relationship “strategic and smart.” He noted, “Powered by economic logic, we have turned shared interests into shared prosperity. India is the springboard for Japanese business to the Global South. Together, we will shape the Asian Century for stability, growth and prosperity.”

He recalled Japan’s role in India’s development journey. “Japan has always been an important partner in India's journey of development. From Metro to Manufacturing, semiconductor to start-ups, our partnership has been a symbol of trust. Japanese companies have invested more than USD 40 billion in India. In the last two years, there has been a USD 13 billion private investment,” he said.

Reforms Driving India’s Progress

The Prime Minister also highlighted the government’s reform-driven agenda. “Our approach of reform, perform and transform is behind this change. In 2017, we started One Nation One Tax; now we are bringing new reforms to this. We have given importance to ease of doing business. We have given single-window approval for businesses,” Modi said.

These reforms, he added, have made India more attractive for investors and positioned it as a hub for growth.

Modi’s Japan Visit

Modi began his two-day official trip to Japan on Friday morning. This is his first standalone visit to the country in nearly seven years. The visit comes at the invitation of Japanese Prime Minister Shigeru Ishiba and includes participation in the 15th India-Japan Annual Summit.

During the summit, Modi and Ishiba are expected to hold detailed talks on bilateral progress, along with discussions on regional and global challenges. The visit aims to deepen the Special Strategic and Global Partnership between the two nations.

After Japan, Modi will head to China from August 31 to September 1 to attend the Shanghai Cooperation Organisation (SCO) Summit in Tianjin.