Indian Economy News

2025: A Defining Year for India’s Growth

The economic conditions in India for the year 2025 represent a Goldilocks moment, where the country is experimenting with a period characterized by significant growth but low inflation, thanks to effective domestic demand, structural policies, and support. According to the latest update from the Government of India, the real GDP in the country grew by 8.2% in Q2 of the FY26, a sharp upgrade from the previous figures, having recorded 7.8% in Q1 and 7.4% in Q4 of the FY25, indicating the steady growth the country is recording, despite the presence of uncertainties within the international environment. On the other hand, the inflation levels, measured through the Consumer Price Index, recorded a considerable drop in a yearly evaluation, ranging from 4.26% in January 2025 to a low of 0.71% in November 2025. The country’s exports were also on the rise, recording US$ 38.13 billion in November 2025, a considerable upgrade from the previous US$ 36.43 billion.
The resilience of the Indian economy is further evident in the fact that it is backed by strong credit outcomes, strong demand for consumer goods, and favourable financing terms, among other things. The RBI has revised its GDP estimates for FY26 to 7.3%, being optimistic about the growth prospects. The external environment is showing improvement as the current account deficit has softened and exports of the service sector are rising. International organizations like World Bank, International Monetary Fund, Organisation for Economic Co-operation and Development, as well as Fitch Ratings, have estimated that India will grow at a rate above the world average and is one of the fastest-growing major economies of the world.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.