Skip to content

GDP shows improvement in India’s economy

GDP shows improvement in India’s economy


The latest rosy economic growth figures, released recently, give Indian Prime Minister Narendra Modi a potentially powerful political weapon as he looks to get re-elected in the spring.

Asia’s third-largest economy said its gross domestic product expanded 6.6 per cent in the three months through December—the last quarter to be announced before the world’s largest democracy starts going to the polls likely in April. The strong showing means India’s economy grew an average of around 7.3 per cent a year in the almost five years under Prime Minister Modi, an acceleration from 6.7 per cent during the previous five fiscal years under his party’s main rival, the Congress party.

While GDP could give the prime minister’s party, the Bharatiya Janata Party, a rhetorical edge, this most basic of economic indicators has become controversial in India. In recent years it has been repeatedly reworked and recalculated, usually in ways that made growth look better during Mr Modi’s reign.