India’s economy continues to demonstrate remarkable resilience, posting a 7.4% growth rate in the final quarter of FY25, with full-year GDP growth standing at a solid 6.5%. The growth was primarily driven by private consumption and renewed industrial investment, signaling a positive shift after periods of global economic turbulence.
The government’s continued infrastructure push and public capital expenditure programs have played a central role. Sectors such as construction, transport, and manufacturing witnessed healthy expansion. Meanwhile, exports grew by 6.3% year-on-year, highlighting a rebound in external demand.
Finance Minister Nirmala Sitharaman lauded the figures, stating, “This performance reflects the inherent strength of our economic fundamentals. We are poised to emerge stronger, with greater employment and higher income levels.”
However, economists urge caution, pointing to inflationary pressures and global uncertainties. With interest rates expected to stay firm due to global monetary tightening, maintaining momentum will require prudent fiscal management. Still, the current trajectory places India among the fastest-growing major economies, reaffirming
its position as a global investment hotspot.
By Kunal Roy, Senior Business Writer, Industrial Front