Key Points

Goyal's response came after a report by Union Bank of India (UBI) mentioned that India's GDP for the first quarter of financial year 2026 is expected to clock a growth rate of 7 per cent, up from 6.5 per cent in the first quarter of financial year 2025 (Q1 FY25).

"I think that once again the negative thinking of leaders like Rahul Gandhi has been proved wrong by India. Rahul Gandhi says that India's economy is a dead economy, and the hardworking 140 crore Indians have once again shown the world by making India the world's fastest-growing economy.

He highlighted India's rapid economic growth, poverty reduction initiatives, and the rising global confidence in the country's resilience.

The Union Minister expressed optimism that under Prime Minister Narendra Modi's vision, India would not only achieve the target of becoming the third-largest economy within the next three years but also transform into a "self-confident developed India" by 2047, fulfilling the government's long-term resolution.

"It shows what potential India has, how strong India's economy is, how fast India is progressing, how the work of ending poverty is being done successfully in India and how in the coming years India will become the third largest economy of the world by 2027 and a self-confident developed India by 2047, we will fulfill the Prime Minister's resolution of 2047," he added.

The UBI report added that Gross Value Added (GVA) growth for the quarter is estimated at 6.7 per cent, a marginal increase from 6.5 per cent in the same quarter last year, but slightly below the 6.8 per cent registered in Q4 FY25.

The GVA is an economic indicator that measures the value of goods and services produced within an economy or the industry. UBI's Q1 FY25 projections are slightly lower than the 7.4 per cent recorded in the previous quarter.

According to the report, the key highlight for the quarter is the narrowing gap between nominal and real GDP growth, with nominal growth expected to ease to the 8-8.5 per cent range, down from around 9 per cent earlier. The report added that this can be attributed to a sharp drop in the GDP deflator, driven by deflation in the WPI and easing CPI inflation.

The report added that the GDP growth in Q1 appears frontloaded, partly to pre-empt the potential impact of newly imposed 50 per cent US tariffs and due to favourable base effects. Also, the first quarter of FY25 was marked by elections, which delayed government spending, creating a low base for comparison.

- ANI