India's economy has surged to an impressive 8.2% GDP growth rate in the fourth quarter of 2025-26, the Ministry of Statistics confirmed today, making it the fastest-growing major economy in the world for the third consecutive year.
The growth was driven by strong performances in manufacturing (+12.1%), IT services (+9.8%), and infrastructure spending (+15.3%). The "Make in India" initiative has begun yielding results, with electronics manufacturing output doubling over the past two years.
Finance Minister Nirmala Sitharaman hailed the figures as "validation of India's transformative economic reforms." She noted that foreign direct investment reached a record $98 billion in the fiscal year, with significant inflows from semiconductor, EV, and green energy sectors.
The Reserve Bank of India maintained its cautiously optimistic stance, keeping the repo rate unchanged at 5.5% while noting that inflation remains within the target band at 4.1%.
Goldman Sachs revised its India GDP forecast upward, projecting India to become the world's third-largest economy by 2028, overtaking Japan. The report cited demographic advantages, digital infrastructure, and policy continuity as key drivers.
However, economists cautioned that rural employment growth and income inequality remain areas requiring attention. The opposition pointed to rising food prices and called for targeted intervention in agricultural markets.