India-Mexico Business Chamber (IMBC)

Indian Economy

The Indian Economy – Growth, Resilience, and Global Leadership

Introduction

 

India has emerged as a top-five global economy, powered by a post-pandemic rebound, robust domestic demand, and a strong wave of capital investment. In FY25, India’s nominal GDP reached ₹76.60 lakh crore (US$ 886.16 billion), representing 8.0% year-on-year growth.

 

This momentum is driven by:

 

  • Resilient private consumption
  • High government capital expenditure
  • Rising exports and private sector confidence

 

With structural reforms, streamlined taxation, and increased digitalization, India is poised to solidify its place among the world’s top three economies in the coming decade.

Market Size & Economic Performance

 

India's real GDP for Q2 FY25 is estimated at ₹44.10 lakh crore (US$ 509.36 billion), with 5.4% YoY growth.

 

Key highlights:

 

  • 113 unicorns valued at over US$ 350 billion – world’s 3rd-largest unicorn ecosystem
  • Third globally in renewable energy attractiveness
  • $1.03 trillion in cumulative FDI inflows since 2000
  • CPI inflation eased to 5.22% as of December 2024
  • Current Account Deficit narrowed to 0.7% of GDP in FY24
  • Government targeting $1 trillion in exports by 2030

 

India’s economic landscape blends high-growth sectors with ambitious sustainability goals, including Net Zero Emissions by 2070.

Recent Economic Developments

 

India continues to demonstrate economic resilience and agility.

 

Key trends in 2024–25:

 

  • PMI hits 14-year high (62.2) – strong business optimism
  • Domestic air travel rebounds to 161.3 million passengers
  • PE-VC investments reach US$ 31.5 billion (H1 2024)
  • GST collections hit record ₹1.77 lakh crore (Dec 2024)
  • FX reserves surpass US$ 625 billion
  • Index of Industrial Production climbs across mining, manufacturing, and electricity

 

These indicators reinforce India’s position as a diversified, consumption-driven, and future-ready economy.

Government Initiatives Driving Growth

 

India’s government has implemented transformative policies across sectors:

 

  • Union Budget 2024–25: ₹48.21 lakh crore (US$ 577B), with 17% increase in capex
  • Pradhan Mantri Suryodaya Yojana: 1 crore rooftop solar installations
  • PM-VISHWAKARMA Scheme: Supporting traditional artisans & MSMEs
  • Amrit Bharat Station Scheme: Upgrading 1,300+ railway stations
  • Draft Carbon Credit Trading Scheme: Climate-focused reforms
  • PLI Scheme for Pharma: Strengthening domestic production
  • Foreign Trade Policy 2023: Bolstering exports & "Aatmanirbhar Bharat"

 

These programs aim to build an inclusive, resilient and innovation-led economy.

The Road Ahead

 

India’s growth outlook remains strong, driven by:

 

  • 37.4% YoY increase in capital expenditure (Q2 FY24)
  • Robust service exports (+29.8% YoY)
  • Improved supply chains and port infrastructure
  • Declining inflation and stable macroeconomic indicators

 

With favorable demographics, strong institutions, and digital transformation, India is well on its way to becoming a dominant global economic power over the next 10–15 years.

Explore Investment Opportunities in India


Connect with IMBC to learn how your business can tap into one of the world's most promising economies.

Contact Us