Despite global economic headwinds, India is set to remain the fastest-growing major economy, with the IMF projecting GDP growth at 6.4% for FY25 and between 6.3-6.8% for FY26.
Key factors contributing to this growth include:
- Strong domestic demand driving consumption-led expansion
- Rising foreign direct investment (FDI) across key sectors
- Government incentives for manufacturing and exports, particularly under the PLI scheme
However, global risks such as geopolitical tensions, energy price fluctuations, and monetary tightening in developed economies pose potential challenges.
The Economic Survey 2024-25 highlights that India’s macroeconomic fundamentals remain solid, with strong contributions from the services and industrial sectors. The country’s digital economy, increasing trade diversification, and green energy investments will play a crucial role in sustaining growth momentum.
Experts believe India is well-positioned to navigate global uncertainties and maintain its position as one of the fastest-growing economies globally.
