Where's the GDP debate? The world is raising a toast to India
India’s 7.8% growth has the world taking notice. Fitch, S&P and Moody’s have all raised their forecasts, even as questions over the GDP numbers continue at home. The economy has held up better than expected, but with oil, inflation and tighter financial conditions looming, keeping up this pace may be the harder part.
The world seems to be congratulating India for its economic performance. Fitch Ratings raised India's growth forecast for 2027 to 6.9% from 6.4%, following S&P Global Ratings' projection of 7% and Moody's upgrade to 7% from 6%. These upgrades came after India reported a strong 7.8% GDP growth in the April-June quarter.
Despite the 7.8% growth figure being at the center of a heated debate, the government has defended the methodology. Prime Minister Narendra Modi hailed the growth as a "herculean feat," attributing it to resilience against global disruptions like oil price shocks and supply-chain issues. He also criticized critics, saying "doomsayers were doomed and India bloomed...yet again!"
However, some former policymakers, like former RBI Governor Raghuram Rajan, question why rapid economic growth hasn't led to stronger job creation and foreign direct investment. Rajan also questioned the measurement and comparison of the official GDP numbers, especially after India shifted to a new GDP series.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
