India has solidified its position as the world’s fastest-growing major economy, with real GDP growth estimated at 6.5% in 2024–25 – a pace expected to continue into 2025–26, according to the Reserve Bank of India. This robust performance comes at a time when global economic uncertainty continues to loom.
Fuelled by strong domestic demand, easing inflation, and rising exports, the Indian economy has shown resilience across sectors. Key economic indicators – including record-high foreign exchange reserves of $702.78 billion, a manageable current account deficit of 0.6% of GDP, and increasing foreign direct investment – reflect growing global confidence in India’s long-term prospects.
Inflation has declined sharply, with CPI inflation falling to 2.82% in May 2025, the lowest since February 2019. Food inflation also dropped to 0.99%, offering relief to households. This is the lowest food inflation seen since October 2021. The Reserve Bank expects inflation to remain well within its 4% target in the coming months.
India’s capital markets are also booming. Retail investors grew from 4.9 crore in 2019 to 13.2 crore in 2024, while initial public offerings (IPOs) activity surged — with 259 IPOs raising ₹1,53,987 crore between April and December 2024. India now accounts for 30% of global IPO listings.
On the external front, India recorded FDI inflows of $81.04 billion in FY 2024–25 — a 14% rise from the previous year. Exports also reached an all-time high of $824.9 billion, with services exports alone touching $387.5 billion, a 13.6% annual increase.
The manufacturing sector continues to expand, with Gross Value Added (GVA) rising from ₹15.6 lakh crore in 2013–14 to ₹27.5 lakh crore in 2023–24, reflecting deeper industrial capacity and competitiveness.
With strong fundamentals, stable inflation, and robust investor confidence, India’s economy remains on a steady upward path – offering a bright spot in an otherwise volatile global landscape.
