India’s domestic market growing rapidly

Despite the ongoing conflict in West Asia, India recorded a GDP growth rate of 7.8% in the first quarter of the current financial year. The growth reflects the stability and steady progress of the economy. Economists and even the Reserve Bank of India (RBI) had not expected such a high growth rate. In fact, some had predicted a slowdown in economic growth. The RBI had forecast 7% growth, but the country has performed better than expected. The stability of the Central government under Prime Minister Narendra Modi, financial policies aimed at boosting economic growth and domestic production, and strong growth in the manufacturing, construction and services sectors have helped India achieve this growth despite the sharp rise in oil prices.

Compared with the 6.9% growth recorded in the same quarter of the previous year, the latest figure marks a significant increase. It is indeed a matter of pride that this achievement has made India the fastest-growing major economy in the world. Prime Minister Modi and Finance Minister Nirmala Sitharaman have said that the growth is the result of the collective hard work and efforts of the people of India. Prime Minister Modi said the GDP growth had disappointed those who had predicted India's economic decline. However, he also urged people to remain cautious and pay greater attention to economic matters in the coming days. He advised people to buy gold only when necessary, avoid holding wedding ceremonies abroad and limit unnecessary spending on tourism. His comments came as the West Asian conflict continues.

India imports around 85-90% of the fuel it needs. This is also one of the biggest areas where the country spends its foreign exchange. In 2025-26, India's total import bill stood at around $77,500 crore. Of this, around $24,070 crore was spent on crude oil, gold and edible oil. Crude oil alone accounted for around $ 13,470 crore, while $ 7200 crore was spent on gold imports. Fuel imports cannot be easily reduced. India is the world's second-largest gold importer after China. In the 2025-26 financial year, the value of gold imports increased by 24%. The central bank also imports more gold from abroad than jewellers and individuals combined.

The Prime Minister's appeal to people to limit unnecessary gold purchases is likely based on the idea that doing so could help the country save foreign exchange during the current West Asian crisis. Growth in the manufacturing sector, which stood at 9.2%, and 12.1% growth in the real estate and IT sectors, along with strong performance by the services sector, were among the key drivers of GDP growth. However, the slowdown in the agricultural sector, which grew by only 3.6%, is a cause for concern as it directly affects the lives of ordinary people. The country therefore needs to give greater attention to strengthening and stimulating the rural economy.