Indian Economy Soars: Tops Global Charts with Record Exports and 6.5% GDP Growth
New Delhi (The Uttam Hindu): Amid global uncertainties, the Indian economy is moving ahead with strength and confidence, and has established itself as the fastest growing major economy in the world. A spectacular GDP growth of 6.5% in FY 2024-25, record-breaking exports and inflation under control have further strengthened India's economic story.
According to RBI Governor Sanjay Malhotra, in this global environment, the Indian economy remains a key driver of global growth. Strong domestic growth factors, better macroeconomic fundamentals and prudent policies are driving the growth momentum.
strong growth momentum
India's real GDP grew at 6.5 per cent in FY 2024-25, the highest among the world's major economies. The Reserve Bank of India (RBI) expects this growth momentum to continue in 2025-26. This impressive performance has been made possible by strong domestic demand, rising private investment and high public investment in infrastructure. India's economy has nearly tripled in size over the past decade, growing from Rs 106.57 lakh crore in 2014-15 to Rs 331.03 lakh crore in 2024-25.
Big relief on inflation
Another big positive news for the economy is on the inflation front. The inflation rate based on the Consumer Price Index (CPI) fell to 2.82% in May 2025, the lowest level since February 2019. An even bigger relief was seen in the prices of food items, where the Consumer Food Price Index (CFPI) was recorded at just 0.99%, the lowest food inflation since October 2021.
Excellent performance on foreign front too
India's external sector is providing a strong support to the economy.
Record exports: India's total exports reached a new peak of US$ 824.9 billion in 2024-25. This represents a growth of 77% from US$ 466.22 billion in 2013-14, a decade ago.
Foreign Direct Investment (FDI): India remains a top choice for global investors. FDI inflows are projected to grow 14 per cent to US$81.04 billion in FY2024-25. This is more than double the US$36.05 billion received in 2013-14.
Foreign exchange reserves: India's foreign exchange reserves stood at a massive US$697.9 billion as of June 20, 2025. This is enough to cover more than 11 months of imports, providing a buffer against global shocks.
Growing confidence in the market
Investor confidence in the Indian capital market is at an all-time high. The number of retail investors in the country is projected to grow 2.7 times from 4.9 crores in 2019 to 13.2 crores by the end of 2024. Moreover, India's share in global IPO listings is projected to rise to 30% in 2024, the highest in the world.
In short, India has struck a successful balance between high growth rates and price stability. With strong fundamentals, India is well positioned to meet global challenges and build a strong future.