The ruling BJP termed the 7.8 per cent GDP growth in the April-June quarter of 2025-26 as a “slap” on the face of Opposition leader Rahul Gandhi on Saturday, a day after government data showed the Indian economy posting its best growth in five quarters.
The Congress leader had echoed US President Donald Trump’s criticism of India’s economy, declaring that “everybody except Prime Minister Narendra Modi and finance minister Nirmala Sitharaman” knew that the economy was “dead.”
“For the acerbic, delusional, frustrated, and rejected Rahul Gandhi—the same man who declared India a ‘dead economy’—the latest GDP numbers are the hardest slap of reality,” BJP’s IT cell head Amit Malviya wrote on X. “India has just clocked 7.8 per cent GDP growth in Q1 of FY 2025-26, leading the world’s major economies.”
“India is not just growing but also proving the doomsayers wrong, quarter after quarter. The same purveyors of the ‘India is a dead economy’ narrative are now scrambling to hide their faces,” Malviya wrote in another post.
“Those who call it a ‘dead economy’ should now understand that India is a ‘long live economy’, which is on the path to realising the dream of a developed and fully self-reliant India,” said Union agriculture minister Shivraj Chouhan.
“The sweat of the Indian farmers, the hard work of our scientists, and the 140 crore Indians have demonstrated their capabilities,” Chauhan said.
Arunachal Pradesh chief minister Pema Khandu posted on X, "Rahul Gandhi called India a Dead Economy. Q1 FY 2025-26: 7.8% GDP growth, fastest among major economies. The only thing truly dead is Rahul’s credibility."
The Congress’s Kerala unit, which comes up with witty takedowns of the BJP’s claims, remained combative: “Tell us which sector has grown so much so that cumulative GDP has grown by 7.8%? Despite all these Electric Vehicles charging from the grid, Electricity production has gone negative. -1.5% really means that Industrial production is sputtering. Same with car sales, private vehicles. How fake are our GDP numbers now?”
Industry backs growth story
India Inc lined up to highlight the strength of domestic demand and reforms-driven momentum, even as Trump’s tariffs loomed large.
“India’s growth story reflects the underlying strengths of the Indian economy, strong fiscal boost through increased government expenditure, great performances by services and manufacturing, and of course, continued reforms,” CII president Rajiv Memani said. “At 7.8 per cent GDP growth, India would be the fastest growing, and this would also be standout growth in the face of many global headwinds.”
CII director general Chandrajit Banerjee added: “India’s real GDP growth of 7.8 per cent in the first quarter of FY2025-26 is a remarkable achievement. This outcome reinforces India’s position as the fastest growing large economy in the world.”
Ficci president Harsha Vardhan Agarwal called the GDP numbers a “pleasant surprise, beating all expectations.”
“The income tax relief provided in the budget, cut in the policy repo rate by 100 basis points, good progress seen in the monsoon and the forthcoming resetting of the GST rates will support domestic demand and provide us with the necessary buffers to counter the expected weakness in exports on account of the reciprocal and penal tariffs imposed by the US,” he said.
Ficci senior vice president Anant Goenka said the numbers “clearly indicate the strength of the Indian economy and the improving momentum, which is being supported by domestic demand.”
PHD Chamber of Commerce and Industry (PHDCCI) president Hemant Jain emphasised structural reforms.
“The reforms have been across sectors, be it in infrastructure, ease of doing business, GST or manufacturing, among others. We are sure that in the times to come, despite tariff headwinds, the Indian economy will be on a sustained growth trajectory,” he said.
Jain projected a growth rate of 7 per cent for the current financial year.
The auto industry, too, saw confidence.
“India’s GDP growth of 7.8 per cent in Q1 is very encouraging. It reflects strong domestic demand and resilient manufacturing. For the auto component industry, this momentum reinforces confidence to invest, localise, and expand exports,” said Vinnie Mehta, director general, Automotive Component Manufacturers Association of India (ACMA).
Assocham secretary general Manish Singhal highlighted the impact of tax and GST reforms.
“Reforms like income tax exemptions announced in the Budget, which played a huge role in boosting consumption, are showing up, and the next big reforms like GST will further boost growth prospects,” he said, adding that 7 per cent GDP growth for the year was “well within reach.”