India’s Economy Posts Robust Growth Despite Mideast Energy Shock - WSJ

**India’s Economy Posts Robust Growth Despite Mideast Energy Shock**

*New Delhi, September 1, 2026* – India’s economy expanded at a 7.8 % annualised rate in the latest reporting period, according to the Wall Street Journal, defying expectations that rising oil prices triggered by the Middle‑East energy shock would dampen growth. The surge was driven largely by a rebound in manufacturing output, a sustained credit expansion, and strong consumer spending, especially in the fast‑moving consumer goods (FMCG) and technology sectors. While global oil prices jumped by roughly 15 % after the escalation of the Israel‑Hamas conflict, India’s strategic petroleum reserves and recent policy measures that capped fuel taxes helped contain the impact on domestic inflation.

The impressive growth figure has become a focal point of political debate. Prime Minister Narendra Modi hailed the 7.8 % pace as “a testament to the nation’s resilience and the success of the Swadeshi agenda,” urging citizens to continue prioritising indigenous products, even advising against buying gold or seeking marriage abroad. In contrast, opposition leader Rahul Gandhi dismissed the numbers as a “jhooth ki goonj” (echo of falsehoods) and called for a more transparent assessment of economic welfare. The Congress party issued a statement describing the GDP data as a “greatly distorted picture” that fails to capture rising income inequality and regional disparities.

Economists note that while the headline growth rate is robust, underlying challenges remain. The current account deficit widened modestly due to higher import bills for crude oil, and inflationary pressures persisted in food and fuel categories despite the government’s price‑capping measures. Analysts also point to the need for structural reforms—particularly in labour markets and public investment—to sustain momentum once global energy volatility eases. Nonetheless, the latest data underscores India’s capacity to absorb external shocks, reinforcing its position as one of the world’s fastest‑growing major economies.

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