Prime Minister Narendra Modi has congratulated the people for achieving a 7.8% GDP growth rate in the first quarter of the 2026-27 financial year, calling it a reflection of the nation's "collective strength" and hard work. In a video message posted on Tuesday, September 1, Modi said India had achieved this growth despite wars, global instability and disruptions to supply chains.
According to official data cited by the Prime Minister, India's real GDP grew by 7.8% in the April-June quarter, higher than the 6.9% recorded in the same quarter last year, though lower than the 8.6% growth seen in January-March 2026. The service sector recorded 10% growth, while manufacturing registered 9.2% growth. Modi pointed out that China's GDP grew 4.3% and the US GDP grew 2.1%, asserting that India is now the world's fastest rising economy.
Modi also used the occasion to renew his appeal for Swadeshi, or self-reliance, urging citizens to avoid foreign holidays, weddings abroad and unnecessary gold purchases. "The more we emphasise Swadeshi, the more we emphasise self-reliance," he said, promoting the idea of "Wed in India". He specifically advised, "Unless necessary, do not buy gold," noting that India imports most of the gold it consumes.
The Prime Minister's remarks drew sharp reactions from the opposition. Congress president Mallikarjun Kharge described the GDP figures as a "PR stunt" and questioned how unemployment figures could have crossed 40% if the economy were in good condition. Commerce Minister Piyush Goyal countered, saying that calling the GDP figures a PR stunt is "a case of calling the grapes sour".
Modi, who posted his video from Bishkek, Kyrgyzstan, lashed out at the negative outlook behind what he termed the "Jhooth Ki Goonj" (echo of lies), an apparent reference to Congress leader Rahul Gandhi. He also highlighted that the Gulf war has raised prices of fuel and natural gas, disturbed supply chains, and impacted economic progress across nearly all countries, but India had managed to avoid a serious crisis.
Beyond the GDP numbers, Modi pointed to other economic indicators: August GST collection stood at Rs 2 lakh crore, compared to Rs 1.74 lakh crore in August last year. He also noted that India had been importing 99% of its semiconductor chip requirements, but has now started exporting chips, with a recent export to Malaysia. The world market for semiconductor chips is estimated at over Rs 40 lakh crore. Under Semicon 2.0, Rs 1,27,000 crore will be invested in semiconductor chips, and India aims to set up the entire supply chain. The PM noted that the target to train 85,000 engineers within 10 years has already been achieved within four years. India imported Rs 15 lakh crore worth of semiconductor chips between 2017 and 2025. Under Semicon India, 12 semiconductor projects have been cleared in six states, and three semiconductor plants have already started working in Sanand, Gujarat.