At a time when the global economy is grappling with uncertainty, India has emerged as a rare bright spot, the United Nations mid-year report showed. The United Nations’ World Economic Situation and Prospects (WESP) update projects India’s GDP to grow by 6.3 per cent in the current fiscal year—making it the fastest-growing large economy. The momentum is expected to continue into 2026, with growth estimated at 6.4 per cent.
This strong performance stands in contrast to a subdued global outlook, weighed down by rising trade tensions, policy uncertainties, and declining cross-border investments.
India’s growth is being fuelled by robust domestic demand and sustained government spending. These have helped maintain employment levels and contain inflation, which is forecast to fall to 4.3 per cent in 2025—comfortably within the Reserve Bank of India’s target range.
Investor confidence remains strong, reflected in record gains across stock indices. Manufacturing is on the rise, supported by favourable policies and resilient external demand. Strategic sectors like defence production are leading the export surge, underscoring India’s growing economic strength.
Capital markets hit new highs
India’s capital markets have played a pivotal role in channeling domestic savings into investment. As of December 2024, the stock market reached record highs, outperforming many other emerging markets despite global and domestic headwinds.
Retail investor participation has surged from 4.9 crore in FY20 to 13.2 crore by December 2024—a testament to long-term confidence in India’s economic potential.
The primary market also saw remarkable activity, with IPOs rising 32.1 per cent to 259 between April and December 2024. Capital raised nearly tripled to Rs 1,53,987 crore from Rs 53,023 crore in the previous year. India’s share of global IPO listings jumped from 17 per cent in 2023 to 30 per cent in 2024, making it the world’s top contributor to IPO-led capital mobilisation.
Manufacturing sees decade-long expansion
India’s manufacturing sector has steadily expanded over the last decade. According to the Ministry of Statistics and Programme Implementation, the Gross Value Added (GVA) from manufacturing at constant prices rose from Rs 15.6 lakh crore in 2013–14 to an estimated Rs 27.5 lakh crore in 2023–24. The sector’s share in the economy remained stable, from 17.2 per cent to 17.3 per cent.
This growth reflects not only steady domestic demand but also successful policy interventions and supply chain resilience.
Exports hit all-time highs
India’s total exports reached a record USD 824.9 billion in 2024–25, up 6.01 per cent from the previous year. This is a significant leap from USD 466.2 billion in 2013–14, showing consistent growth over the past decade.
Services exports continue to be the main driver, growing 13.6 per cent year-on-year to an all-time high of USD 387.5 billion. In March 2025 alone, services exports rose 18.6 per cent to USD 35.6 billion.
Merchandise exports excluding petroleum also posted record gains, hitting USD 374.1 billion in 2024–25, up from USD 352.9 billion the year before. This growth underlines India’s expanding manufacturing base and its move into high-value sectors like defence production.
Defence sector breaks new ground
India’s defence sector has seen transformational growth. Indigenous defence production rose to Rs 1,27,434 crore in 2023–24—a 174 per cent increase from Rs 46,429 crore in 2014–15. Meanwhile, defence exports soared from Rs 686 crore in 2013–14 to Rs 23,622 crore in 2024–25, marking a 34-fold increase over a decade.
Today, Indian defence products are shipped to nearly 100 countries, reflecting India’s emergence as a credible global supplier of strategic equipment. Government-led initiatives aimed at achieving Atmanirbharta (self-reliance) have played a key role in boosting both production and exports.
India’s economic trajectory, as highlighted in the UN’s mid-year report, tells a story of resilience, reform, and rising global relevance. From vibrant capital markets and expanding manufacturing to record-breaking exports and a booming defence sector, the country’s progress is broad-based and sustainable.
Rooted in sound policy decisions and powered by strong domestic fundamentals, India is not only navigating global economic challenges—it is emerging as a key architect of the next phase of global growth.
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