Hindi / English
In a world grappling with economic uncertainty, India has emerged as a beacon of hope. According to the United Nations’ World Economic Situation and Prospects update for 2025, India is set to grow at a healthy rate of 6.3%, making it the fastest-growing major economy despite global turbulence. This strong performance is largely thanks to solid domestic demand and continued government investment, which have helped keep the engine running smoothly.
What’s Driving Growth?
India’s projected GDP growth for 2025 stands at 6.3%, a slight dip from earlier expectations, but still impressive in today’s climate. The forecast for 2026 looks even better at 6.4%. This stands in sharp contrast to the global growth rate, which is expected to hover around 2.4%. While much of the world slows down, India’s economy is managing to hold its ground—thanks to people spending more and the government continuing to invest in key areas.
Stock Market Surge
India’s stock markets have had a remarkable run. By the end of 2024, market indices were soaring, outperforming many other developing economies. What’s even more encouraging is the rise in retail investors—growing from 4.9 crore in FY20 to 13.2 crore. The IPO scene also picked up speed, with listings up by over 32% and nearly triple the capital raised compared to the previous year. It’s clear that more and more Indians are taking an active interest in investing.
Steady Manufacturing Momentum
The manufacturing sector has been quietly but steadily gaining strength. Over the past decade, there’s been consistent growth in output, driven by domestic demand and effective policy measures. While its share in the GDP has stayed stable, it’s a sign that the sector is holding its own and continuing to contribute to the broader economy.
Exports Reach New Highs
India’s exports hit a record USD 824.9 billion in 2024–25—a 6% jump from the previous year. The big story here is services exports, which reached their highest-ever levels. But merchandise exports also saw solid growth, showing that India’s manufacturing capabilities are expanding and reaching global markets more effectively.
Defence Sector on the Rise
India’s defence sector is going through a significant transformation. More equipment is being made at home, and exports are climbing too. Government efforts to boost self-reliance in defence are clearly paying off, helping position India as a serious player in the global defence market.
Inflation Easing, Jobs Stable
There’s some relief on the inflation front, with rates expected to drop to 4.3% in 2025—well within the Reserve Bank of India’s comfort zone. Employment levels have mostly held steady, though there are still gaps when it comes to gender equality in the workforce. Closing that gap remains a key challenge moving forward.
The Global Picture
There’s some relief on the inflation front, with rates expected to drop to 4.3% in 2025—well within the Reserve Bank of India’s comfort zone. Employment levels have mostly held steady, though there are still gaps when it comes to gender equality in the workforce. Closing that gap remains a key challenge moving forward.
Share the article:
Facebook
WhatsApp
Telegram
X
Threads