In a recent address to the Parliament, Prime Minister Narendra Modi highlighted India's unique position as a country experiencing high economic growth alongside low inflation. This assertion underscores the resilience of the Indian economy amidst global economic uncertainties.

Economic Growth and Stability

PM Modi emphasized that India's economic growth is very high among major economies, and this high growth comes with low inflation. He noted that the 8% GDP growth rate during the second quarter of the current financial year reflects the country's progress and symbolizes India's position as a growth driver for the global economy. International organizations have also acknowledged India's growth potential, with the International Monetary Fund (IMF) projecting GDP growth of 6.6% for 2025 and 6.2% for 2026. The Reserve Bank of India (RBI) has also revised its FY26 growth estimate upwards to 7.3%.

Low Inflation

The Prime Minister pointed out the success in maintaining low inflation. Retail inflation, measured under the Consumer Price Index (CPI), reached a low of 0.25% in October. The RBI has also reduced its full-year CPI forecast to 2%, significantly below the 4% target.

India as a Model

PM Modi stated that India stands as a model of high growth and low inflation for the world. He contrasted this with the economic performance of G7 countries, where growth is near 1.5% while global growth is at 3%. He noted that while the world faces economic slowdowns and trust crises, India stands tall, etching its growth story and acting as a pillar of trust and a bridge builder.

Reforms and Future Vision

PM Modi hailed the current period as a time of significant reforms, spanning from the Direct Tax System to the Goods and Services Tax (GST). He emphasized that these reforms are guided by national goals and a clear vision for the country's future, rather than being reactionary or driven by political interests. He also called for shedding "mental slavery" and "colonial mentality" to achieve the goals of a "Viksit Bharat" (Developed India), highlighting the importance of self-confidence in national progress. He stated that the second quarter of the 21st century will lay the foundations of Viksit Bharat. Lauding Indian economy's growth trajectory, Modi said, “From 'fragile 5', India is moving fast towards becoming world's third largest economy."

Trade and Global Presence

The Prime Minister mentioned that India has become a leading voice of the Global South and has signed trade deals with nine major countries, including a significant agreement with the European Union, which includes 27 nations. These deals, along with those with the US, signal the world that the Indian economy is stable and progressing.