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Analysts argue that far from fading, India is positioning itself as a rising economic power, with projections suggesting it could become the world’s second-largest economy by 2038
India’s Q1 FY26 GDP growth data shows 7.8% growth | Image: Representative
India, once dismissed by US President Donald Trump as a “dead economy”, has posted a robust 7.8 per cent GDP growth in the April–June quarter, outpacing the United States, which managed just 3.3 per cent growth in the same period despite Trump’s repeated boasts of overseeing the “best economy.”
According to data released by the National Statistical Office (NSO), India’s growth not only beat forecasts pegged at 6.5 per cent but also marked the fastest expansion in five quarters.
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For comparison, GDP rose 6.5 per cent in the same period last fiscal, while the last time growth was higher was in January–March 2024, when it touched 8.4 per cent.
Fastest-Growing Major Economy
India’s growth continues to set it apart globally. With China expanding at 5.2 per cent in the April–June window, India has retained its title as the world’s fastest-growing major economy.
The IMF and World Bank both project India’s growth to hover around 6.3–6.4 per cent in the coming years, cementing its status as a key driver of global growth.
The surge was powered by the services sector, which expanded 9.3 per cent compared to 6.8 per cent a year earlier, and agriculture, which nearly tripled its growth rate from 1.5 per cent to 3.7 per cent.
The construction sector, however, slowed to 7.6 per cent from 10.1 per cent last year.
US Slowdown Amid Tariff Spat
By contrast, the US economy has shown signs of cooling, dragged down by weaker consumer spending and trade pressures.
The comparison comes at a politically charged time, with Trump imposing steep 50 per cent tariffs on Indian exports ranging from textiles to chemicals and leather, calling it punishment for New Delhi’s continued purchases of Russian oil.
Friday’s GDP data is expected to bolster Prime Minister Narendra Modi’s agenda of resilience, even as India absorbs the shock of Washington’s tariff hikes.
Trump’s dismissal of India’s economy as “dead” has previously drawn global criticism. Australia, among others, described India instead as a land of “fantastic opportunities.”
Analysts argue that far from fading, India is positioning itself as a rising economic power, with projections suggesting it could become the world’s second-largest economy by 2038 in purchasing power parity terms, boasting a GDP of nearly $34 trillion.
About the Author
Ronit Singh, Senior Sub-Editor at News18.com, works with the India and Breaking News team. He has a keen focus on Indian politics and aims to cover unexplored angles. Ronit is an alumnus of Christ (Deemed to be…Read More
Ronit Singh, Senior Sub-Editor at News18.com, works with the India and Breaking News team. He has a keen focus on Indian politics and aims to cover unexplored angles. Ronit is an alumnus of Christ (Deemed to be… Read More
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