4 min readJun 20, 2026 07:00 AM IST
First published on: Jun 20, 2026 at 07:00 AM IST
At the start of 2026, the global economy faced its deepest and most perilous disruption in a generation. Yet, India stood as a defiant beacon of stability under the visionary leadership of Prime Minister Narendra Modi. At a time when the global economy is faltering, Modi has not only ensured that India remains the world’s fastest-growing major economy with a GDP growth of 7.7 per cent, but has also positioned the country as a pivotal anchor of the global system.
This was the result of strategic policies implemented under the Modi government, which spent a decade building defensive buffers. It focused on accumulating foreign exchange reserves, providing the RBI with ammunition to stabilise the currency. It had also diversified its crude oil procurement channels, which helped lower its absolute dependence on West Asian supply routes.
The strategic vision extended into domestic infrastructure. From the outset, the Prime Minister prioritised developing piped natural gas infrastructure across Tier-I and Tier-II cities to secure energy supply and shield citizens from cooking-gas shortages. Now, this network is scaling into rural areas. Initiatives like the PM Surya Ghar Yojana, clean nuclear energy developments, and ethanol-blended petrol demonstrate that a visionary approach can create solutions to complex energy challenges and logistical bottlenecks.
The geopolitical crisis culminated in a total shutdown of the Strait of Hormuz, triggering what the IMF classified as the largest oil-supply shock ever recorded. On paper, no country appeared more structurally vulnerable to this energy shock than India, which relies on imports for nearly 90 per cent of its crude oil requirements. Furthermore, roughly 61 per cent of India’s Liquefied Natural Gas is sourced directly from West Asia. Standard economic models dictated that a blockade would devastate India’s fiscal health, spark hyperinflation in food supply chains, and flatten its growth trajectory.
Rather than succumbing to the crisis, India achieved a stunning real GDP growth rate of 7.7 percent in 2025-26 thanks to the leadership of PM Modi. This was the highest growth rate recorded by any major economy in the world during that period. While rival global economies decelerated under the weight of surging energy costs, India under PM Modi accelerated, refusing to stumble despite facing a direct hit to its core vulnerabilities.
A deeper look reveals a permanent upgrade to India’s industrial engine. The manufacturing sector delivered spectacular double-digit growth. Simultaneously, India’s focus on self-reliance manifested in its defence industry. The annual defence production had surged to an all-time high of Rs 1.78 lakh crore during 2025-26. Furthermore, the massive deployment of next-generation digital infrastructure over the past decade enabled targeted, swift policy responses. Through infrastructure spending and steady income growth, the domestic market deepened. When international trade networks seized up, India’s massive domestic market stepped in. By maintaining a conservative monetary framework, the government ensured that the RBI retained the flexibility to intervene when it mattered most.
The global financial community took note of India’s triumph. At the peak of the West Asia crisis, IMF Chief Economist Pierre-Olivier Gourinchas commended the country’s performance, stating that India “has been doing very, very well”. The World Bank’s April 2026 India Development Update concluded that India “remains among the fastest-growing major economies in the world”. World Bank President Ajay Banga said India “has demonstrated that it can show exceptional growth”, pointing to its forex reserves, low domestic inflation, healthy banking sector, and a public debt structure denominated predominantly in its own rupee.
Domestically, this vitality was validated by real-time data. Rising GST collections provided a real-time indicator that the domestic economy was generating substantial internal commercial activity rather than simply surviving the external shock.
The crisis of 2026 put India to the ultimate test, and the nation answered with an acceleration rather than a stumble. While the government built the vital macroeconomic buffers, this “resilience dividend” ultimately belongs to the people of India — driven by the daily actions of farmers, entrepreneurs, and consumers. Through a powerful combination of visionary leadership and domestic resolve, India converted a global energy crisis into a definitive demonstration of its economic sovereignty.
The writer is Lok Sabha MP (Garhwal, Uttarakhand) and national media head, BJP
The global financial community took note of India’s triumph. At the peak of the West Asia crisis, IMF Chief Economist Pierre-Olivier Gourinchas commended the country’s performance, stating that India “has been doing very, very well”. (Illustration: Tanushri Mitra) 
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