India's strong GDP growth reflects success of reforms: PM Modi
New Delhi, June 5
Prime Minister Narendra Modi said on Friday that India's growth momentum remains strong and the Union government would leave no stone unturned to further 'ease of living', 'ease of doing business' and increase opportunities for the country's youth.
"The GDP growth rate of 7.7 per cent in FY 2025-26 and 7.8 per cent in Q4 of FY 2025-26 reflect the inherent strength of our economy, the success of reforms, and the hard work of 140 crore Indians," Prime Minister Modi remarked.
"India has kept up its momentum as the world's fastest growing major economies. Meanwhile, Germany grew at a mere 0.4 per cent growth rate, Japan at 0.8 per cent, the Euro Area at 1.3 per cent, and the G7 at 1.6 per cent," he said.
China's growth rate has also been slowing due to the lack of domestic demand in the economy with overcapacity building up in the manufacturing sector and increasing unemployment among youth.
India's GDP data shows that both private and final consumption expenditure and gross fixed capital formation have exhibited more than 7.5 per cent growth during 2025-26.
This also reflects the massive investments by the government in big ticket infrastructure projects such the highways, railways, ports and airports which have helped to drive up the growth rate as India continues to be the fastest growing economy amid the global slowdown.
The secondary sector recorded a strong 8.8 per cent growth while the tertiary sector grew by 9.9 per cent, according to the official statement.
The primary sector recorded a 3.2 per cent, mainly driven by the performance of the agriculture and fisheries sectors.
Manufacturing, trade, repair, hotels, transport, communications and services related to broadcasting, storage and financial, real estate and professional services sectors have attained a double-digit growth during 2025-26, the official statement said.
The International Monetary Fund had forecast India to be the only economy that is expected to clock more than six per cent growth rate in 2025-26 as the US tariff turmoil disrupted world trade and geopolitical tensions added to the uncertainties in the global economy.
— IANS
Reader Comments
Finally some good news! The comparison with China's slowdown is interesting—our domestic demand is our strength. But let's be honest, for the common man, inflation and rising costs are still big worries. Hope the government addresses that too.
Impressive growth, no doubt. But I'm sceptical—are these numbers adjusted for inflation properly? Meanwhile, small businesses are still struggling with compliance costs. 'Ease of doing business' needs to reach the grassroots, not just big corporates.
As an entrepreneur, I can see the difference. Infrastructure projects have cut logistics costs significantly. But we need more skilled workers—the education system isn't keeping pace with industry needs. Growth is good but quality matters too.
The agriculture sector growing at 3.2% is a relief for farmers like my father. But why is manufacturing still lagging? 'Make in India' needs more push—we can't rely only on services forever. Good start, but long way to go.
Happy to see India shining globally! But as a student, I worry about job creation. The GDP story is great for headlines, but my friends are still struggling to find decent work. Growth must be inclusive—let's see more grassroots benefits.
S Sneha F