India expected to lead global growth with a projected GDP expansion of 7.2%, driven by manufacturing and digital sectors.
Risks and Policy Suggestions
The World Bank has projected that India’s GDP will grow at a robust 7.2% in FY2025, reaffirming its position as the world’s fastest-growing major economy. The report cites strength in manufacturing, digital services, and public investment as primary growth engines.
The government’s Production Linked Incentive (PLI) schemes have bolstered domestic manufacturing, particularly in electronics, semiconductors, and electric vehicles. India’s startup ecosystem, now the third-largest globally, has also attracted record FDI inflows.
Despite global uncertainties—such as high interest rates and geopolitical tensions—the Indian economy remains resilient. Inflation is projected to stay within the RBI’s 4-6% target range, supported by stable commodity prices.
The World Bank urges India to focus on labor reforms, ease of doing business, and infrastructure expansion. Investments in education, healthcare, and green energy are critical for sustaining long-term growth.
In the global context, India’s economic model is increasingly seen as a template for emerging markets, balancing digitization with inclusive development.