Story perspectives

India reports 7.8% GDP growth, $766B forex reserves

By Drooid · Oct 3, 2026, 4:20 PM UTC · How we work

Summary

Sitharaman Reports Growth

Finance Minister Nirmala Sitharaman said India kept economic fundamentals strong despite global turbulence.
She reported real GDP grew 7.8% in the first quarter of FY27.
She announced foreign-exchange reserves total about $766 billion.
She highlighted FY27 capital expenditure was budgeted at INR12.22 lakh crore.
She reported non-food credit grew 18.8% in the year to August 2026.

Summary

Mishra Emphasizes Resilience

Dr P.K. Mishra said resilience costs must be justified by the disruption they avoid.
He identified energy security, critical minerals and strategic industries as key risk-mitigation pillars.
Mishra urged diversifying external ties to reduce concentration risk while remaining globally integrated.
He warned the clean-energy transition increases reliance on imported mineral processing.
He linked Atmanirbharta to balancing self-sufficiency with openness for global markets.

History

Historical Context

In 1991 India faced a balance-of-payments crisis, with foreign-exchange reserves covering only about three weeks of imports. Prime Minister P.V. Narasimha Rao appointed economist Manmohan Singh as finance minister and, with IMF support, devalued the rupee and dismantled the Licence Raj, opening FDI up to 51 %. Foreign investment then rose from $132 million (1991-92) to $5.3 billion by 1995-96, laying the foundation for today’s growth focus.

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Sitharaman Reports Growth

Finance Minister Nirmala Sitharaman said India kept economic fundamentals strong despite global turbulence.
She reported real GDP grew 7.8% in the first quarter of FY27.
She announced foreign-exchange reserves total about $766 billion.
She highlighted FY27 capital expenditure was budgeted at INR12.22 lakh crore.
She reported non-food credit grew 18.8% in the year to August 2026.

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