Economy News

India’s Economy Growth

January 1 , 2026 15 hrs 0 min 61 0

India became the world’s fourth-largest economy in 2025, overtaking Japan, with a Gross Domestic Product (GDP) of $4.18 trillion.
Official projections indicate India will surpass Germany and become the third-largest economy by 2030, reaching an estimated GDP of $7.3 trillion.
Real GDP growth reached 8.2% in the second quarter of FY 2025–26, marking a six-quarter high, supported by strong industrial output and services sector expansion.
Domestic demand, especially private consumption, has remained a key driver of growth, aided by declining unemployment and stable financial conditions.
Policy reforms, including Income Tax and Goods and Services Tax (GST) rationalisation, supportive monetary conditions, and government capital expenditure, have strengthened economic momentum.
India aims to achieve high middle-income status by 2047, with a favourable macroeconomic environment described as a “goldilocks period” of high growth and low inflation.