India's GDP grows 7.7% in FY26, Modi says nation is world's fastest-growing major economy
Synopsis
India clocked 7.7% GDP growth in FY2025-26 — and 7.8% in the final quarter alone — putting it ahead of China and every other major economy, according to PM Modi's address in Daman. The numbers land as much of the world is slowing, making India's divergence the central economic story of the moment.
Key Takeaways
PM Narendra Modi announced India's GDP growth at 7.7 per cent for FY2025-26 at a public rally in Daman on 5 June .
The January-March quarter recorded even stronger growth of 7.8 per cent .
Modi declared India the world's fastest-growing major economy , ahead of China's reported 4-5% range.
Growth was attributed to reforms, infrastructure investment in roads, railways, ports, airports, renewable energy , and digital infrastructure .
The Prime Minister reaffirmed the 'Reform, Perform and Transform' policy agenda for the years ahead.
Prime Minister Narendra Modi on Friday, 5 June declared that India recorded a 7.7 per cent GDP growth rate in financial year 2025-26, retaining its standing as the world's fastest-growing major economy. Speaking at a public rally in Daman, Modi described the figures as a reflection of the structural strength of India's economic foundations.
Key Growth Figures
According to the Prime Minister, the full-year growth came in at 7.7 per cent for FY2025-26, with the January-March quarter — ending 31 March — clocking an even sharper 7.8 per cent. Modi said every Indian should take pride in the achievement. 'The figures released today clearly show how strong the foundations of India's economy are,' he said, addressing the gathering in Daman.
What the Government Attributes the Growth To
Modi credited the performance to a combination of economic reforms, large-scale infrastructure expansion, and welfare programmes targeting lower-income households. He invoked the government's 'Reform Express' framing, arguing that investments in roads, railways, ports, airports, renewable energy, and digital infrastructure had compounded over time to strengthen the growth trajectory.
'The massive infrastructure development taking place across the nation and the large-scale work being carried out for the welfare of the poor are producing these results,' he said. The Prime Minister also reiterated the government's overarching policy doctrine of 'Reform, Perform and Transform', pledging it would continue to guide policymaking ahead.
Global Context
Modi noted that India's growth had been achieved against a backdrop of global uncertainty, with several major economies experiencing a slowdown. This comes amid persistent concerns about subdued demand in Europe, a cooling US labour market, and sluggish recovery in China — conditions that have weighed on many emerging markets. India's ability to sustain above-7-per-cent growth in that environment, if the figures are borne out in final data, would mark a significant divergence from the global trend.
What the Numbers Mean Going Forward
A 7.7 per cent full-year print would place India comfortably ahead of China, which has reported growth in the 4-5 per cent range in recent quarters, reinforcing New Delhi's claim to the fastest-growing-major-economy title. Notably, this is the government's own characterisation of the data; independent assessments and final National Statistical Office figures will be closely watched. Modi assured the nation that India would 'continue to move forward rapidly on the path of Reform, Perform and Transform' in the years ahead.
Point of View
But the political framing in Daman ran ahead of the data's full context. Final National Statistical Office figures and the methodology behind the advance estimates will matter — India has revised GDP numbers downward after initial releases before. More critically, growth at this pace has not yet translated uniformly into job quality or household income gains at the bottom of the pyramid, which Modi himself acknowledged by citing welfare programmes as a co-driver. The fastest-growing-major-economy label is accurate by current headline figures, but the harder question — whether this growth is broad-based enough to be durable — was not addressed at the rally.
NationPress
31 Jul 2026
Frequently Asked Questions
What was India's GDP growth rate in FY2025-26?
India recorded a GDP growth rate of 7.7 per cent in financial year 2025-26, according to Prime Minister Narendra Modi's address in Daman on 5 June. The January-March quarter alone clocked 7.8 per cent growth.
Why did PM Modi make this announcement in Daman?
Modi was addressing a public rally in Daman on 5 June when the latest economic growth figures were released. He cited the data as evidence of the strength of India's economic foundations and linked it to his government's reform agenda.
What does 'fastest-growing major economy' mean for India?
It means India's GDP is expanding faster than other large economies such as China, the United States, and members of the European Union. At 7.7 per cent, India's growth rate outpaces China's reported 4-5 per cent range for recent quarters.
What factors did PM Modi credit for the growth?
Modi attributed the performance to economic reforms, large-scale infrastructure investment across roads, railways, ports, airports, renewable energy, and digital infrastructure, as well as welfare programmes targeting lower-income households.
What is the 'Reform, Perform and Transform' agenda?
It is the overarching policy doctrine of the Modi government, which frames its approach to governance around structural reforms, measurable delivery outcomes, and economic transformation. Modi reaffirmed on 5 June that this agenda would continue to guide policymaking ahead.
