Page 13 - Policy Economic Report - July 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

5. Indian Economy

India’s economic growth

India’s growth story continues to draw global attention, backed by strong fundamentals and
consistent performance. Real GDP, which measures the economy’s output expanded by 6.5 per cent
in 2024–25. The Reserve Bank of India expects this pace to continue into 2025–26. With 6.5% GDP
growth, India stands as the fastest growing major economy.

Figure 6: Global economic projections for 2025

July 2025 Source- World economic situation & Prospects 2025

This sustained performance is being driven by strong domestic demand. Rural consumption has picked
up, city spending is rising, and private investment is on the upswing. Businesses are expanding
capacity, with many operating near their maximum output levels. At the same time, public investment
remains high, especially in infrastructure, while stable borrowing conditions are helping firms and
consumers make forward-looking decisions. Some of the key takeaways of India becoming an
economic powerhouse are as follows: -

• Total exports increased by 76% over the last decade, reaching US$ 825 billion in 2024–25, led
by engineering goods, electronics, and pharmaceuticals.

• Services exports more than doubled, growing from US$ 158 billion in 2013–14 to US$ 387
billion in 2024–25.

• Cumulative FDI inflows reached US$ 1.05 trillion, with a record 27% increase in equity inflows
in the first 9 months of FY25 alone.

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