India’s economy showed strong recovery last quarter, providing a much-needed boost to Prime Minister Narendra Modi’s ambitious growth agenda, which has faced challenges due to a recent slowdown.

According to the Statistics Ministry, India’s GDP grew by 6.2% in the October-December quarter, aligning with economists’ forecasts in a Bloomberg survey. This marks an improvement from the revised 5.6% growth recorded in the previous quarter.

For the full fiscal year, India’s economic growth is projected at 6.5%, slightly higher than earlier estimates. However, the government expects GDP growth to remain below 7% next year, raising concerns among experts who argue that the country needs an 8% growth rate to achieve its long-term goal of becoming an advanced economy.

Despite being the world’s fastest-growing major economy, India faces uncertainties in the coming months, especially as global trade tensions rise due to U.S. President Donald Trump’s tariff policies.

To drive economic momentum, the Indian government recently announced record tax cuts worth ₹1 trillion in the federal budget. Additionally, the Reserve Bank of India (RBI) cut interest rates for the first time in nearly five years, aiming to stimulate investment and consumer demand.

As India navigates global economic shifts, its resilience and policy measures will play a crucial role in sustaining long-term growth.