PM Modi hailed India’s 7.8% Q1 GDP growth as a sign of economic strength while taking a veiled swipe at critics of the government’s economic record
Prime Minister Narendra Modi on Monday welcomed India’s stronger-than-expected 7.8% GDP growth in the April-June quarter, while taking a veiled swipe at critics of the country’s economic performance.
Without directly naming Congress leader Rahul Gandhi, Modi referred to what he described as “jhooth ki goonj”, or the “echo of lies”, while highlighting the latest economic figures.
The remarks came after official data showed that India’s economy expanded 7.8% year-on-year in the first quarter of financial year 2026-27, beating expectations and the Reserve Bank of India’s earlier estimate of 7%.
Modi hails 7.8% growth
Reacting to the GDP figures, PM Modi described the performance as a major achievement and said the numbers reflected India’s growing economic strength despite global headwinds.
The Prime Minister also posted that the latest performance showed India’s resilience, with strong domestic demand and economic activity supporting growth.
The 7.8% expansion exceeded the 7.1% growth forecast in a Reuters poll, although it was lower than the revised 8.6% recorded in the previous quarter.
‘Jhooth ki goonj’ remark
While celebrating the GDP numbers, PM Modi took aim at those who have questioned the strength of India’s economy.
His reference to “jhooth ki goonj” was seen as a veiled political attack on opposition criticism, including remarks by Rahul Gandhi questioning the government’s economic record.
The Congress has previously challenged the government’s presentation of GDP data, arguing that headline growth does not necessarily capture issues such as employment and household economic pressures.
Manufacturing, investment drive growth
The latest GDP data showed broad-based momentum across several sectors.
Manufacturing grew 9.2% during the April-June quarter, accelerating from 8.3% in the same period a year earlier. Financial services also recorded strong growth of 12.1%, helped by robust bank credit.
Private investment was another major contributor, with its growth rate rising to nearly 12%, compared with 5.8% a year earlier.
Gross value added, considered a better indicator of underlying economic activity, increased 8.2% during the quarter.
Domestic consumption remains strong
Consumer spending also remained resilient during the quarter. Personal consumption expenditure rose 7.1%, compared with 6.8% a year earlier.
Economists attributed the strong performance to resilient domestic demand, increased investment and manufacturing momentum.
The numbers also came despite considerable external challenges, including geopolitical tensions, elevated crude oil prices and disruptions to global trade.
Growth beats RBI estimate
The 7.8% growth figure was significantly above the 7% estimate previously projected by the RBI for the April-June quarter.
The stronger-than-expected performance has prompted some economists to raise their expectations for India’s full-year growth.
However, risks remain. Higher oil prices, potential inflationary pressures, rupee weakness and global financial conditions could weigh on the economy in the coming quarters.
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