India’s economic size has tripled over the past decade, rising from Rs 106.57 lakh crore to Rs 331.03 lakh crore in 2024–25, underscoring the country’s robust growth trajectory and macroeconomic resilience. The official figures released on Sunday confirm a GDP growth rate of 6.5 percent for the year, with projections from the Reserve Bank of India, the United Nations, and the Confederation of Indian Industry indicating continued momentum into 2025–26.
The impressive expansion is being fuelled by surging domestic demand. Rural consumption has accelerated, urban spending is strong, and private investment is on an upswing. Capacity utilisation among businesses is nearing optimal levels, and public sector investment—especially in infrastructure—remains high. These dynamics are being supported by stable credit markets and borrowing conditions, enabling forward-looking decisions by both firms and households.
India’s positive trajectory stands in contrast to a fragile global backdrop. The United Nations has described the world economy as being at a “precarious moment,” marked by slowing cross-border capital flows, trade frictions, and policy uncertainty. Despite these headwinds, India has emerged as a global outlier, drawing praise from international institutions and market participants for its stable fundamentals and robust performance.
Inflation, a major concern for both businesses and consumers, has eased considerably. In May 2025, the Consumer Price Index (CPI)-based inflation rate dropped to 2.82 percent year-on-year—its lowest level since February 2019 and 34 basis points below April’s figures. Food inflation, a key driver of household expenses, declined to 0.99 percent in May, its lowest reading since October 2021. Both rural and urban food inflation stayed nearly identical at 0.95 percent and 0.96 percent, respectively, confirming a broad-based moderation in price levels for essential commodities.
According to the Reserve Bank of India, inflation remains well-aligned with its medium-term target of 4 percent and could potentially dip below that threshold in the coming quarters.
Investor confidence in India’s growth story is reflected in the continued strength of capital markets. Despite global volatility, Indian equity indices maintained impressive performance through the end of 2024, outpacing many other emerging markets. The ability of Indian markets to convert household savings into productive investments has turned them into a vital engine of economic dynamism.
Together, these indicators point to a maturing economy with a diversified growth base, stabilised inflation, and increasing investor trust. India’s ability to chart a steady course through turbulent global conditions highlights its growing stature as a key pillar of the global economic order.
