Amit Shah Hits Back at Economic Critics Citing Global Ratings and Growth

Union Home Minister Amit Shah strongly criticized detractors who label India's economy as dead, pointing to recent sovereign rating upgrades and robust macroeconomic growth numbers during an address at the UP International Trade Show 2026.

Shah argued that detractors display a jaundiced mindset incapable of perceiving national progress, stating that those who view the economy as lifeless suffer from a dead perspective themselves. He emphasized that macroeconomic momentum has remained resilient despite international turbulence, geopolitical unrest, and shifting global trade dynamics.

Supporting his assertions on India's economic strength, Shah cited specific upward revisions from international agencies. He noted that Moody's raised India's growth forecast from 6 percent to 7 percent, while Japan Credit Rating Agency upgraded India's sovereign rating from BBB+ to A-. Furthermore, Shah highlighted that the economy maintained strong momentum by achieving a growth rate of 7.8 percent in the preceding quarter.

Complementing these figures, Fitch Ratings separately revised its financial year 2026-27 growth forecast for India upward from 6.4 percent to 6.9 percent, citing stronger-than-expected June-quarter activity. S&P Global Ratings similarly projected India's growth at 7 percent for the financial year, underscoring a broader pattern of upward revisions across international institutions following a robust performance in FY26 where expansion reached 7.7 percent.

Turning to industrial policy, Shah pointed to progress within the domestic defence sector as tangible evidence of broader economic transformation. He stated that manufacturing investments are actively flowing into all six nodes of the Uttar Pradesh Defence Corridor, which comprise Jhansi, Chitrakoot, Lucknow, Agra, Aligarh, and Kanpur.

According to the Home Minister, indigenous production from these facilities has substantially bolstered national security capabilities. He noted that BrahMos missiles manufactured within Uttar Pradesh and AK-203 assault rifles produced in Amethi supply critical deterrence against cross-border threats and internal insurgencies.

Shah reaffirmed the federal government's long-term economic objective for the country to become the world's leading economy across all sectors by August 15, 2047, coinciding with the centenary of Indian independence. He stated that this ambitious target would be achieved despite external hurdles.

In addition to domestic manufacturing corridors, Shah credited the administration's commercial strategy of securing Free Trade Agreements with multiple international partners as a vital driver of industrial export potential. Meanwhile, independent assessments from Fitch indicate that the Reserve Bank of India may implement a 25-basis-point policy rate increase to 5.5 percent to manage domestic inflation risks amidst sustained consumer demand.

Trade outcomes under the India-UAE trade pact showed bilateral trade exceeding USD 100 billion during fiscal year 2024-25, alongside non-oil exports reaching USD 27.4 billion in fiscal year 2023-24. Furthermore, rural inflation differentials across states are heavily influenced by the high weight assigned to food items in rural consumption baskets.