India's Economy Continues to Thrive Amid Global Uncertainty

Strategic Insights -

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 Takeaways:

  • The Indian economy has shown resilience across sectors, with real GDP growth estimated at 6.5% in 2024--25, a pace expected to continue into 2025--26.
  • 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, the lowest food inflation seen since October 2021.
  • India's capital markets are booming, with retail investors growing from 4.9 crore in 2019 to 13.2 crore in 2024.
  • Initial public offerings (IPOs) activity surged, with 259 IPOs raising é 1,53,987 crore between April and December 2024, and 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, and exports reached an all-time high of $824.9 billion.
  • The services sector is driving growth, 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 é 15.6 lakh crore in 2013--14 to é 27.5 lakh crore in 2023--24, reflecting deeper industrial capacity and competitiveness.

Statistics:

  • Real GDP growth estimated at 6.5% in 2024--25, a pace expected to continue into 2025--26. (Source: Reserve Bank of India)
  • Record-high foreign exchange reserves of $702.78 billion. (Source: Reserve Bank of India)
  • Manageable current account deficit of 0.6% of GDP. (Source: Reserve Bank of India)
  • CPI inflation fell to 2.82% in May 2025, the lowest since February 2019. (Source: Reserve Bank of India)
  • Food inflation dropped to 0.99%, the lowest food inflation seen since October 2021. (Source: Reserve Bank of India)
  • Retail investors grew from 4.9 crore in 2019 to 13.2 crore in 2024. (Source: Reserve Bank of India)
  • Initial public offerings (IPOs) raised é 1,53,987 crore between April and December 2024. (Source: Reserve Bank of India)
  • India now accounts for 30% of global IPO listings. (Source: Reserve Bank of India)
  • FDI inflows of $81.04 billion in FY 2024--25, a 14% rise from the previous year. (Source: Reserve Bank of India)
  • Exports reached an all-time high of $824.9 billion, with services exports alone touching $387.5 billion. (Source: Reserve Bank of India)

Sources:

  • Reserve Bank of India
  • Contify.com