August 31, 2025

India’s economy is buzzing with great news! Economic Affairs Secretary Anuradha Thakur cleared the air, saying India is all set to meet its fiscal deficit target of 4.4% for the current financial year. There were worries because the latest monthly numbers looked a bit off. But Thakur explained, “quarter-by-quarter or month-by-month assessments of fiscal deficit numbers may not give a correct picture because of temporal mismatches, which may come in on the receipt and expenditure side.” She assured that overall assessments show the target will be achieved. The government plans to keep the fiscal deficit at 4.4% of GDP, or Rs 15.69 lakh crore for 2025-26. What’s driving this upbeat outlook? Strong economic fundamentals like robust government spending (capex) and positive private consumption. Thakur said, “Government capex has been a big factor in holding up our numbers so far and not only on the fiscal deficit side but the growth numbers also remains robust as of now.” The economy’s growth rate of 7.8% in the first quarter of FY26 shows broad-based growth. The farm sector, manufacturing, construction, and service sectors like trade and real estate all contributed well. She commented, “Q1 numbers reflect the basic resilience of our economy. It reflects strengthening of the momentum in the economy and it is anchored in strong macroeconomic fundamentals.” India’s growth shines even brighter compared to other countries. While China’s GDP grew 5.2% from April to June, India zoomed ahead at 7.8%, making it the fastest-growing major economy! Thakur remains confident that this strong momentum will continue in the coming quarters, supported by good performances in agriculture, manufacturing, and domestic demand. So, despite the usual bumps in monthly stats, India’s economy is charging ahead with power and promise!

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Tags: India gdp growth, Fiscal deficit, Economic affairs secretary, Anuradha thakur, Government capex, Private consumption,