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PM Modi recalls India’s ‘Fragile Five’ era

By Sohail Khan 5 September 2026, 10:28 pm

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Business News›News›Politics›PM Modi recalls 2013 when India was among ‘Fragile Five’ economies amid weak growth

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PM Modi recalls 2013 when India was among ‘Fragile Five’ economies amid weak growth
Synopsis

Reflecting on India's economic journey, Prime Minister Narendra Modi brought attention to 2013, a year when the nation faced the bleak 'Fragile Five' label. Weak GDP figures, sky-high inflation, and an unprecedented current account deficit overshadowed the landscape. Widespread corruption, along with security challenges and stagnant policy measures, complicated matters. He proudly contrasted these struggles with today's vibrant economic growth, highlighting the progress achieved.

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From ‘fragile five’ to 7 8% growth: PM Modi attacks opposition over ‘pessimism’ on India's economy

Prime Minister Narendra Modi on Saturday recalled a time when India was counted among the world’s “Fragile Five” economies, with weak GDP growth, high inflation and a record current account deficit, as he contrasted the country’s economic position then with its trajectory since.

Speaking at the centenary celebrations of Shri Ram College of Commerce (SRCC), Modi said the economic conditions in 2013 were marked by widespread concerns over growth, inflation and policy paralysis.

Also Read: The ‘naraaz fufa’ of politics: Modi’s latest dig at habitual critics

“The world was counting India among the "Fragile Five,"” Modi said, referring to the period when India’s economic vulnerabilities were drawing global attention.

He said the economic challenges were reflected in several key indicators.

“The World Bank had lowered its GDP growth forecast. The current account deficit was at an all-time high. Inflation was around 10 per cent,” Modi said.

“The industrial sector was in the grip of a slowdown,” he added.

Modi also recalled the broader headlines surrounding the country at the time, including corruption allegations, security incidents and concerns over governance.

Also Read: PM Modi lauds SRCC for nurturing generations of leaders in business, public life

“There is a gang that will take what I am saying, break it into small pieces and put it in my account. So, let me warn you in advance about this,” Modi said before recounting the conditions that prevailed in 2013.

“For example, Indian soldiers were being killed along the LoC,” he said. “The current generation may find it surprising; perhaps they may wonder, "Did this really happen?" Yes, it did.”

Modi also cited the exposure of corruption in the helicopter deal and bomb blasts in Hyderabad among the major headlines of the period.

“These were all headlines at that time,” he said.

The prime minister said younger Indians may not be aware of the economic and political circumstances that prevailed then.

“I firmly believe that our students today may not know about all these things,” Modi said. “These developments show what the condition of the country was at that time.”

Summing up the economic situation, Modi said, “Growth was at the bottom, while inflation was at the peak.”

He also pointed to corruption and the debate over policy paralysis.

“Scams were at their height, and the corrupt were moving around fearlessly. The economy was in distress,” he said.

“There was discussion everywhere about policy paralysis,” Modi added.

On the security situation, Modi said, “Terrorists were operating unchecked, and Pakistan was out of control.”

“In other words, there was nothing but disappointment and despair,” he said.

“There was a time when the country was struggling on every front…” Modi added.

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( Originally published on Sep 05, 2026 )
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From ‘fragile five’ to 7 8% growth: PM Modi attacks opposition over ‘pessimism’ on India's economy

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