GDP Growth Regains Momentum in 2025
One of the key highlights of the year was the sharp rebound in GDP growth during the first half of FY2025–26. After moderating in the previous fiscal year, economic expansion accelerated once again.
- Real GDP growth reached 8.0% in April–September 2025
- Growth improved from 6.1% in the same period last year
- Q1 FY2025–26 growth stood at 7.8%
- Q2 FY2025–26 further strengthened to 8.2%
- Nominal GDP growth remained close to 9%
These figures signaled a strong rebound after the moderation seen in FY2024–25, confirming the economy’s return to a higher growth path.
Broad-Based Sectoral Performance
Growth in 2025 was well distributed across sectors, reflecting a balanced economic recovery.
- Agriculture: Grew between 3–4%, supporting rural incomes
- Manufacturing: Expanded by around 9%, driven by capacity utilization
- Construction: Recorded growth above 7%, backed by infrastructure spending
- Services: Continued to lead with growth of over 9%
Between April and September 2025, the secondary sector grew by 7.6%, while the services sector expanded by 9.3%, highlighting strong domestic demand and industrial revival.
Employment and Export Growth Accelerate
Economic expansion translated into tangible employment gains during 2025.
- EPFO recorded over 21 lakh net new jobs in June 2025
- More than 60% of new subscribers were aged 18–25
- Formal job creation reached record levels
Exports also performed strongly:
- Total exports in FY2024–25 reached $825.25 billion
- Exports during April–September 2025 touched $418.91 billion
- Services exports crossed $199 billion
The growth in services exports reflected India’s rising strength in IT, digital services, and knowledge-based industries.
Strong Domestic Demand and Investment Push
Consumption and investment remained key growth drivers throughout the year.
- Private consumption grew by nearly 8%
- Government spending supported demand
- Gross Fixed Capital Formation rose by 7.8%
- FDI inflows crossed $50 billion in H1 FY2025–26
Infrastructure development gained further traction under the PM GatiShakti initiative, with over ₹76 lakh crore worth of projects approved, boosting long-term productivity.
India Outperforms Global Peers
In a slowing global economy, India emerged as a bright spot:
- India’s growth: ~6.2% in 2025
- Global average: ~2.8%
- China: ~4%
- United States: ~1.8%
This consistent outperformance reinforced India’s role as a key engine of global economic growth.
Policy Support Strengthens the Economy
Several policy measures helped sustain momentum:
- PLI schemes attracted investments worth ₹1.88 lakh crore
- Over 12 lakh jobs created under PLI programs
- Removal of 47,000+ outdated compliances
- GST rationalisation boosted consumption
- New trade agreements expanded export access
These reforms improved ease of doing business and encouraged private sector participation.
Outlook for 2026 and Beyond
With strong fundamentals, rising investment, stable inflation, and sustained policy support, India enters 2026 on a solid footing. The foundations laid in 2025 are expected to drive long-term growth, employment generation, and global competitiveness.
As the year concludes, India’s economic story reflects resilience, confidence, and steady progress toward becoming a stronger and more influential global economy.
