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India Stands Tall: Fastest Growth in a Slowing World

Updated: June 04, 2025 09:35

Image Source: The UNN
India’s economy is holding up well, even as many other countries are struggling with slower growth. While the global economy is facing a tough time, India continues to stand out for its steady performance.
 
Here’s what’s happening:
 
India’s GDP grew by 6.5% in the last financial year. This is a bit slower than the previous year, which saw a big jump of 9.2%, but it’s still the fastest among the world’s major economies.
 
The last quarter of the year (January to March 2025) was especially strong, with the economy growing by 7.4%. This boost came from strong factory output, steady rural demand, and continued government spending.
 
International groups like the OECD expect India to keep growing at about 6.3% in 2025 and 6.4% in 2026. That’s much better than the global average, which is expected to be around 2.9%. For comparison, the US is expected to grow by only 1.6% next year.
 
India’s growth is being helped by people spending more at home, big investments in roads and other infrastructure, and a strong services sector.
 
One area that needs improvement is private investment, which has been slow because of global uncertainty and higher borrowing costs. The Reserve Bank of India has started to lower interest rates, which should help businesses invest more.
 
Inflation is expected to come down, which could encourage even more spending and investment.
 
India’s steady growth shows that it’s becoming more resilient, even when the world economy is facing challenges.
 
Source: CNBC TV18, Economic Times, OECD, BBC, India Today

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