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6 Jun 2026Economy3 questions

Union Home Minister Amit Shah Expresses Satisfaction Over 7.7% GDP Growth in FY 2025–26

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Article summary

India recorded a GDP growth rate of 7.7% in FY 2025–26, with Union Home Minister Amit Shah expressing satisfaction over this economic milestone. This growth figure places India firmly among the fastest-growing major economies globally, reinforcing its position ahead of China and other emerging market peers. The achievement comes on the back of robust domestic consumption, strong manufacturing output driven by the PLI scheme, sustained capital expenditure by the government, and resilient services sector performance. The growth also reflects the cumulative impact of structural reforms undertaken over the past decade, including GST rationalisation, infrastructure push under PM Gati Shakti, and digital public infrastructure expansion. For UPSC aspirants, this data point is critical for understanding India's macroeconomic trajectory, fiscal consolidation efforts, and the government's development narrative heading into the next planning cycle.

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recallTests whether you read the article and retained key facts.
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applicationTests whether you can apply the concept to a new scenario.
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analysisTests whether you can reason across multiple related facts.
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Sample questions — answers revealed after test

EconomyRecallEasy

Q1. With reference to India's national income accounting, which of the following correctly expresses the relationship between Gross Domestic Product (GDP) and Gross Value Added (GVA)?

AGDP = GVA + Taxes on products – Subsidies on products
BGDP = GVA – Taxes on products + Subsidies on products
CGDP = GVA + Subsidies on products – Taxes on products
DGDP = GVA + Net Factor Income from Abroad
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EconomyApplicationMedium

Q2. A finance ministry official is preparing a brief to explain why India's reported GDP growth rate of 7.7% for FY 2025–26 is considered a 'real' growth figure and not inflated by rising prices. Which of the following best justifies this claim?

AThe figure is computed at constant prices using 2011–12 as the base year, thereby removing the effect of price changes from the output measurement.
BThe figure is computed at current prices using 2011–12 as the base year, which adjusts for both inflation and structural changes in the economy.
CThe National Statistical Office deflates nominal GVA using the Consumer Price Index (CPI) to arrive at the real GDP growth figure.
DThe figure represents growth in Gross National Income (GNI) at factor cost, which inherently excludes price-level distortions.
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EconomyAnalysisHard

Q3. Consider the following statements regarding India's GDP estimation framework and the significance of the 7.7% real GDP growth reported for FY 2025–26: 1. The National Statistical Office (NSO), functioning under the Ministry of Statistics and Programme Implementation (MoSPC), is the nodal agency for releasing GDP estimates in India. 2. Government capital expenditure contributes to GDP growth through a multiplier mechanism, wherein public infrastructure investment crowds out private investment in the short run. 3. Real GDP growth at 7.7% necessarily implies a proportionate improvement in per capita income, employment levels, and reduction in multidimensional poverty. 4. India's GDP series currently uses 2011–12 as the base year for computing GDP at constant prices. Which of the statements given above are correct?

A1 and 4 only
B1, 2 and 4 only
C2 and 3 only
D1, 3 and 4 only
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