GDP growth surpasses expectations; India still world's fastest-growing major economy

India's GDP growth surpassed expectations and reached 7.8 per cent in the fourth quarter. This is a sign that the Indian economy continues to make strong progress despite the crisis. In the last quarter of 2025-26, that is, from January to March, the country recorded a GDP growth of 7.8 per cent. With this, the total growth for 2025-26 rose to 7.7 per cent. This is better than the 7.6 per cent growth estimated by the government earlier. It is noteworthy that India achieved this economic achievement even in the context of the US-Iran conflict. Despite the weak external trade environment, domestic demand remained strong, helping India remain the world's fastest-growing major economy.

Services sectors like trade, hotels, transport and communication grew by 12.5 per cent. Finance and real estate grew by 10.4 per cent. The construction sector grew by 8.4 per cent, and the manufacturing sector grew by 7.3 per cent. India's real GDP rose to Rs 87.77 lakh crore in the January-March quarter. It was Rs 81.40 lakh crore in the same period last year.

Economists say the growth rate is likely to remain at seven per cent in the next fiscal year. However, ICRA warns that the potential rise in oil prices due to the US-Iran conflict and a weak monsoon due to the El Niño phenomenon could affect the agricultural sector and rural demand.

These figures are in the latest report of the Union Ministry of Statistics. It is also important to note that there is a huge gap between India's GDP growth and the standard of living of its people. Even as India surges ahead, becoming one of the fastest-growing economies in the world, it is a reality that the standard of living of the common people is not increasing proportionately due to the very low per capita income. The rising prices of fuel, cooking gas, and essential commodities are making life difficult for the common people. India's per capita GDP is only about Rs 2.3 lakh. Due to its large population, this wealth does not reach everyone equally.

A large share of GDP growth is concentrated in the hands of the rich. A large section of the Indian population still lives below the poverty line. The high cost of living is making it even more difficult for people. Therefore, if the standard of living of the people does not increase along with the increase in GDP, it will lead to various conflicts in society. According to the 2013-14 data, India is ranked 144th out of 189 countries in the world in terms of per capita income. In 2022, we moved up to 141st place. One thing is clear. Despite a large GDP and high growth rate, the Indian people can prosper only if the per capita income is high. The current economic picture shows that we still have a long way to go to achieve that.