Indian Economy 2025: India Surpasses America and China to Achieve a New Milestone in Economic Growth
While uncertainties befall the world due to the presidential election in the USA, India has still been able to stand firmly on economic grounds. Key indicators of the Indian Economy 2025 reflect admirable scores, showcasing resilience and adaptability in the face of global challenges. This performance not only strengthens India’s position in the global arena but also highlights its potential as a stable and promising economy amidst worldwide turbulence.
This article discusses what contributes to India’s economy’s staying power, despite the global challenges that are confronting it, especially those emanating from the mixed signals coming from the U.S. economy.
India's Economic Strength Amid Global Challenges
Traditionally, the global economy has faced many challenges like those in China and the USA, where the Indian economy is emerging stronger. There are struggles with domestic consumption and the revival plan of the real estate sector in China, while different signals are sent by the U.S. economy. The labor and construction sectors are weak in the USA, with retail sales, pending home sales, and services remaining strong. Currently India has the world’s fifth-largest economy and their aim to become world’s third-largest economy by 2029 – 2030.
All of the aforementioned implies further expectations of growth for the Indian economy under “Indian Economy 2025.”
India's Growing Strength in Key Sectors Under Indian Economy 2025
For India, the third quarter of Indian Economy 2025 (Q3 FY25) is indicative of positive economic momentum, and high-frequency indicators predict swift advancement ahead.
A report released by the Bank of Baroda stated that another quarter saw further improvement in key indicators, such as GST collection, services PMI, growth in air passenger traffic, and vehicle registration in the third quarter compared with the second. Growth shows a very solid upward movement for the Indian economy.
Increased GST Collection Against Last Year
With an 8.3% year-on-year growth, GST revenues for Q3 hit Rs 5.5 lakh crores; combined with the robust high-frequency indicators, it indicates a possible improvement in consumer demand under the Indian Economy 2025.
Increase in Air Passengers
The Improvement of India's Defense Exports
As a self-reliant country in the defense sector for a long time, India has made sufficient strides in this regard. In FY 2023-24, India exported arms worth ₹21,083 crore-32.5% growth from ₹15,920 crore in FY 2022-23.
To bolster the export of Defense products, India launched the Defence Export Promotion Scheme (SPDE) to provide financial assistance for exhibiting at fairs and reaching out to foreign audiences.
Because of the government’s resolve to persuade further foreign investment through a self-sufficient India path, the local defense sector attracts all sorts of expansion prospects. Defense Minister Rajnath Singh has set an ambitious Export target of ₹50,000 crores by 2029. Along with this, India is one of the top names in the list of World’s Great Power 2025. This reflects India’s earnest commitment to and capability of being one of the players in defense manufacturing.
PMI Assessment of India
It can be well observed that the Purchasing Managers’ Index (PMI) in Q3 was at an average of 59.2, which was up from 58.1 for the same period last year. Hence, this suggests growth in the services sector.
India's Development Focus and Inflation
India’s economic roadmap appears to be bright, with accelerated growth in the second quarter of ‘Indian Economy 2025’. The government is set to increase expenditure in order to stimulate both public and private investment. There may be a downward revision in inflation, which will allow for a eduction in the lending rate by RBI.
