India's GDP Hits 7.8%, But Congress Flags The 'Other Side' Of Growth: 'High-Voltage' Inflation

New Delhi: India's economy grew by 7.8 per cent in the April-June quarter of FY27, beating expectations and signalling resilience despite global uncertainties, geopolitical tensions and supply chain disruptions. The growth, however, has triggered a political debate, with Prime Minister Narendra Modi hailing the performance while the Congress questioning whether the strong GDP numbers reflect the economic conditions faced by ordinary Indians.

Reacting to the latest GDP figures, Prime Minister Narendra Modi congratulated Indians and said the 7.8 per cent growth reflected the country's "collective strength".

"Heartiest congratulations to my fellow citizens. A growth rate of 7.8% —the nation is filled with joy. I congratulate the people of this country for their resolve and their industrious spirit; this reflects our collective strength," Modi said in a post on Instagram.

He pointed to the global environment, saying wars, crises and disrupted supply chains had created uncertainty since the COVID-19 pandemic.

"The world is mired in conflict; news of war is coming from all directions, and the globe is beset by crises. Supply chains are severely disrupted. Since the COVID era of 2020, stability has been elusive everywhere. Yet, India continues to progress rapidly," Modi said.

The prime minister also called for India to maintain the momentum and strengthen self-reliance.

"We must maintain this momentum. We must keep moving forward, and for that, becoming Atmanirbhar Bharat is essential," he said.

PM Modi also urged people to embrace "Swadeshi" and "Vocal for Local", while encouraging domestic travel and weddings in India.

"We should avoid traveling abroad merely for leisure or hosting weddings in foreign lands; instead, we should live by the mantra of 'Weddings in India.' We should also refrain from buying gold unless absolutely necessary," he said.

He said greater focus on self-reliance would help India move towards the goal of a developed nation by the time it completes 100 years of independence.

"The combined strength of 1.4 billion Indians is uniting to take the nation to new heights. Let us celebrate, make a firm resolve, and march forward together to turn that resolve into reality," Modi said.

Congress Questions What 7.8% Growth Means For People

The Congress, meanwhile, questioned the government's celebration of the GDP figures, arguing that strong headline growth does not necessarily reflect the financial pressures faced by households.

Congress general secretary in-charge communications Jairam Ramesh said the 7.8 per cent growth was "not an economic spring" and claimed it presented a "Greatly Distorted Picture" of the Indian economy.

He argued that consumer confidence remained "sluggish", household savings had fallen and debt had reached a "record high".

Ramesh also accused the government of ignoring rising costs faced by ordinary Indians.

"The Modi government is delivering a fresh, high-voltage shock of rising prices to the country every week," he said in a post on X.

He alleged that inflation was affecting not just household expenses but also the cost of building homes and buying electrical goods.

"The price of copper wire has surged from Rs 850 to Rs 1,700 per kg, and aluminum has risen from Rs 350 to Rs 650 per kg. The cost of wiring a 1,000-square-foot house has doubled from Rs 50,000 to nearly Rs 1 lakh," Ramesh said, citing a media report.

He also claimed that solar panels had become 10-15 per cent more expensive, while prices of several electrical appliances and lighting products had increased.

"Inflation is giving a shock to the public's pocket hard from all directions, yet the arrogant Modi government remains intent on masking this reality and misleading the people through statistical jugglery," Ramesh said.

The Congress had earlier described Modi's reaction to the GDP data as "premature celebration", arguing that the growth figure did not fully capture the economic difficulties faced by households and businesses.

What The GDP Data Shows

India's 7.8 per cent GDP growth in Q1 FY27 was faster than most forecasts, which had broadly ranged between 6.9 per cent and 8 per cent.

The economy, however, grew at a slower pace than the 8.6 per cent recorded in the previous quarter.

Gross Value Added (GVA) grew 8.2 per cent in the June quarter, compared with 8.7 per cent in the March quarter.

Manufacturing growth accelerated to 9.2 per cent, from 8.3 per cent a year earlier, while financial, real estate and IT-related services recorded 12.1 per cent growth, compared with 8.8 per cent in the same period last year.

Agriculture also recorded robust growth of 3.6 per cent, despite a delayed monsoon, although this was lower than the 4.4 per cent growth recorded a year earlier.

The latest numbers have therefore created two contrasting narratives: the government has pointed to India's strong growth despite global headwinds, while the Congress has questioned whether the headline GDP figure reflects the economic reality experienced by households.

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