Robust GDP growth and stable indicators signal a strong Indian economy, says BJP

India’s economy remains on a strong growth trajectory ahead of the Union Budget 2026, with the ruling Bharatiya Janata Party highlighting robust Gross Domestic Product (GDP) growth and stable macroeconomic indicators.

Addressing a press conference at the BJP’s central office in New Delhi, BJP national spokesperson Gopal Krishna Agarwal said the country’s GDP is projected to grow at around 7.5 per cent in the current financial year, according to advance estimates.

The comments come days before the budget presentation, with the BJP underlining positive economic data as the government prepares to outline its fiscal and reform priorities for the next financial year.

Agarwal said GDP growth has shown a steady upward trend, rising from 7.4 per cent in the fourth quarter of the previous year to 7.8 per cent in the first quarter of the current financial year, before accelerating to 8.2 per cent in the second quarter. The overall annual growth rate is estimated at 7.4 per cent.

He said the expansion has been broad-based across sectors. Agriculture has supported rural growth of about 3.1 per cent, while the labour-intensive construction sector has recorded growth of around 7 per cent. The services sector continues to be the strongest contributor, registering growth of 9.1 per cent, while manufacturing growth is estimated at 7 per cent.

Referring to global conditions, Agarwal said the international economic framework that emerged after the Second World War has weakened significantly, creating a challenging external environment. He said India’s performance stood out at a time when many major economies are facing slower growth and heightened uncertainty.

On macroeconomic indicators, Agarwal said India’s attractiveness for foreign direct investment is at a record high, while Goods and Services Tax collections continue to rise despite reductions in tax rates under recent reforms. GST collections stood at Rs 1.77 lakh crore in December.

Despite rising protectionism and trade-related challenges globally, he said India recorded exports of $419 billion during the April–September period, the highest ever for the first half of a financial year.

Inflation, he said, remains under control, with both food inflation and headline inflation below 1 per cent. The fiscal deficit is also within target and is projected to remain at 4.4 per cent of GDP.

Agarwal said these trends have continued despite significant direct tax relief announced in the previous budget, including an increase in the basic exemption limit to nearly Rs 12 lakh.

Referring to recent remarks by Prime Minister Narendra Modi, he said the government remains committed to continuous reforms to sustain long-term growth. He said infrastructure investment, manufacturing support, and policy measures aimed at boosting demand remain central to the government’s economic strategy.

He highlighted reforms in defence, space, and nuclear energy, which have been opened to private investment. Around 70 per cent of defence requirements are now met through domestic production, while more than 100 startups are operating in the space sector.

Administrative reforms are also underway, with the constitution of a National Deregulation Commission to improve ease of doing business. Around 1,500 obsolete laws have been repealed, and further simplification is planned. Comprehensive amendments to the Insolvency and Bankruptcy Code are also being prepared, alongside process reforms in GST.

Agarwal said India has strengthened its trade integration through free trade agreements with the United Kingdom, the United Arab Emirates, West Asia and New Zealand, helping Indian manufacturing link more closely with global supply chains.

He said the combination of stable macroeconomic indicators and ongoing reforms positions India for continued growth beyond the current financial year.