India, June 9 -- GDP figure of 7.8 per cent is cause for celebration - but read the fine print, and a more anxious story emerges

India's economy delivered a stellar performance in the January-March quarter of 2026. GDP growth came in at 7.8 per cent, easing slightly from 8 per cent in the preceding quarter but comfortably above market expectations of 7.2 per cent, taking full-year FY26 growth to 7.7 per cent. Prime Minister Modi has every reason to proclaim India the world's fastest-growing major economy. The number is real. The achievement is genuine. But a number, however impressive, is not the full story. Look past the headline, and the stress fractures become visible.

Begin with the central bank. The Reserve Bank of India held its r...