Blitz Bureau
NEW DELHI: India opened 2026 as the fastest-growing major economy in the world, its GDP expanding 7.8% in the first quarter as services, industry and construction offset the drag from higher oil prices and Middle East conflict.
The government matched that momentum with an ambitious public-investment push: the Union Budget for 2026–27 lifted capital expenditure to ₹12.22 lakh crore (about $135.8 billion), up 11.5%, and mapped $175 billion of infrastructure opportunity over seven years.
Services, industry and construction fired together — proof India’s growth engine no longer depends on any single cylinder.
At a Glance
• Q1 2026 GDP: 7.8% (beat forecasts)
• Capex (FY27): ₹12.22 lakh crore, +11.5%
• Infra opportunity: ~$175 billion / 7 years
• RBI full-year forecast: 6.6%
Multilateral assessments echo the confidence. The World Bank projects continued strong expansion, while the Reserve Bank prudently set its full-year forecast at 6.6%. Inflation has stayed well-anchored, giving policymakers room to support activity.
The constructive priority now is to convert headline momentum into productivity and jobs that reach every district — deepening skilling, easing costs for smaller firms, and sustaining the investment tempo.
