Mumbai: As 2025 drew to a close, India’s economy stood out for its resilience, balance, and sustained momentum amid global uncertainty. Macroeconomic indicators released through the year painted a picture of an economy that absorbed external shocks while leveraging domestic demand, policy continuity, and infrastructure-led expansion. India not only retained its position as the world’s fastest-growing major economy but also strengthened the foundations for long-term growth.
GDP Growth Regains Pace
A key highlight of 2025 was the sharp recovery in economic growth during the first half of FY2025–26. Real GDP expanded by 8.0 per cent year-on-year during April–September 2025, significantly higher than the 6.1 per cent recorded in the same period a year earlier. This followed a moderation to 6.5 per cent in FY2024–25 after a high base of 9.2 per cent in FY2023–24, signalling a clear return to a higher growth trajectory.
Quarterly data reinforced this trend. Growth accelerated to 7.8 per cent in the April–June 2025 quarter and further to 8.2 per cent in July–September 2025. Nominal GDP growth also remained robust, hovering close to 9 per cent across both quarters, reflecting healthy income generation and economic activity.
Balanced Sectoral Expansion
Growth during 2025 was broad-based. Agriculture and allied sectors provided stability, expanding between 3 and 4 per cent and supporting rural incomes and consumption. Industrial activity revived strongly, with manufacturing growth nearing 9 per cent in the first half of FY2025–26, driven by rising demand and improved capacity utilisation. Construction activity also remained buoyant, supported by sustained public infrastructure spending.
Services continued to anchor the economy, growing at around 9–10 per cent across the year. Combined data for April–September 2025 showed the primary sector growing by about 3 per cent, the secondary sector by over 7.5 per cent, and the services sector by more than 9 per cent, underscoring the economy’s balanced momentum.
Jobs and Exports Gain Strength
Economic expansion translated into strong employment gains. Formal job creation reached record levels, with EPFO data showing net additions of over 21 lakh members in both June and July 2025. A majority of new entrants were young workers aged 18–25, highlighting improving opportunities for India’s youth.
Exports also scaled new highs. After touching a record $825 billion in FY2024–25, India’s exports reached $418.9 billion during April–September 2025—the highest ever for a first half. Services exports played a major role, growing over 9 per cent year-on-year.
Demand, Investment, and Global Standing
Private consumption remained resilient, supported by stable inflation and rising incomes, while investment activity strengthened further. Capital formation, rising FDI inflows, and accelerated infrastructure approvals under PM GatiShakti reinforced growth prospects.
Globally, India outperformed major economies, with growth projections well above world averages and far ahead of peers such as the US and China.
A Strong Platform for the Future
Policy support through PLI schemes, GST rationalisation, trade agreements, and high public capital expenditure reinforced the expansion. As 2025 ended, India’s economy rested on a stronger, broader, and more resilient base—well positioned for sustained growth in the years ahead.
