India's GDP growth slowed to 5.7% in the second quarter of 2026, marking a slight decline from the previous quarter's 6.1%.The government has announced a series of measures to boost economic activity, including tax cuts, infrastructure investments, and incentives for private sector participation.

Prime Minister Narendra Modi emphasized that the growth rate is still 'good' compared to global benchmarks, citing resilience in key sectors like manufacturing and services.

However, economists caution that the slowdown is partly due to base effects from the previous year's high growth and challenges such as inflation, global economic uncertainty, and a weak monsoon season.The central bank has maintained its interest rate policy, balancing inflation control with growth stimulation.Analysts suggest that the government's focus on fiscal discipline and long-term structural reforms will be critical in sustaining momentum.

Modi's administration has also highlighted initiatives like the Production Linked Incentive (PLI) scheme and digital infrastructure projects as drivers of future growth.While the slowdown raises concerns, the government remains optimistic about achieving its 2026 GDP target of 7.5%, emphasizing the need for continued policy support and private sector collaboration.