Riding high on the wave of a robust 8.2% GDP growth in the second quarter of fiscal year 2025-26, the Bharatiya Janata Party (BJP) has strongly rebuked Congress leader Rahul Gandhi's past remarks about India's "dead economy". The GDP growth, the highest in six quarters, has become a focal point in the ongoing political discourse, with the BJP touting it as a testament to the success of their pro-growth policies and reforms.
Official data released by the Ministry of Statistics and Programme Implementation on Friday, November 28, 2025, showcased the impressive growth, driven primarily by the manufacturing and services sectors. This figure significantly surpasses the 5.6% growth recorded in the same quarter of the previous year and outstrips the 7.8% growth in the first quarter of the current fiscal year. The robust Q2 performance brings the overall growth for the first half of the fiscal year to an impressive 8%.
Prime Minister Narendra Modi expressed his enthusiasm on social media, stating that the growth reflects the impact of the government's policies and the hard work of the Indian people. He affirmed the government's commitment to further reforms and improving the ease of living for all citizens.
The BJP has been swift in its response to Rahul Gandhi's previous criticisms, with party leaders highlighting the stark contrast between his "dead economy" assertions and the reality of India's economic performance. BJP's IT cell head, Amit Malviya, described the GDP numbers as a "hardest slap of reality" for Gandhi, who had echoed former US President Donald Trump's negative assessment of the Indian economy.
The surge in GDP growth was largely propelled by the secondary and tertiary sectors. The manufacturing sector expanded by 9.1%, while the construction sector grew by 7.2%. The financial, real estate, and professional services sectors also experienced a substantial growth of 10.2%. However, the agricultural sector saw a moderate growth of 3.5%, a slight decrease from the previous year.
Chief Economic Advisor V Anantha Nageswaran has revised the GDP growth forecast for the entire fiscal year 2025-26 to at least 7%, an upward adjustment from the previous estimate of 6.3-6.8%. This revision reflects the confidence in the continued momentum of the Indian economy.
While the BJP celebrates the GDP figures as a vindication of their economic policies, some economists urge caution in interpreting the data. The nominal GDP growth of 8.7% indicates that economic activity is still relatively subdued. Additionally, the negative contribution of net exports to GDP growth has increased, reflecting the impact of global uncertainties and trade-related issues.
Despite these concerns, the prevailing sentiment is optimistic, with many analysts expecting the Reserve Bank of India (RBI) to revise its growth projections upwards. Akshat Garg, Head of Research & Product at Choice Wealth, anticipates a GDP range of 6.8-7% for FY26, attributing it to the resilience of private consumption and manufacturing.
The strong GDP growth has reignited the debate over the state of the Indian economy, with the BJP using it to counter opposition criticisms and reinforce their narrative of economic progress. The coming months will be crucial in determining whether this growth momentum can be sustained amidst global economic headwinds.
