India is currently recognized as the fastest-growing major economy in the world, with a projected GDP of $4.3 trillion for 2025, reflecting a remarkable 60% growth since 2020 when it was $2.7 trillion. This growth rate positions India ahead of other major economies, including China, which is expected to grow by 31% during the same period, reaching a GDP of $19.5 trillion.
Current Economic Performance
- GDP Growth Rate: India’s economy grew at an impressive 8.2% in FY23/24, driven by significant public infrastructure investments and an increase in household investments, particularly in real estate. Projections indicate that India will maintain this rapid growth trajectory into FY26 and FY27.
- Debt-to-GDP Ratio: Alongside its growth, India has improved its debt-to-GDP ratio from 88% to 83%, indicating stronger fiscal discipline as the economy expands1. This contrasts with other major economies like China, which has seen its debt-to-GDP ratio rise from 70% to 94% during the same period, highlighting potential vulnerabilities in its growth mode.
Global Economic Context
The global economic landscape is characterized by slower overall growth rates, with advanced economies expected to experience modest increases while emerging markets face challenges. The International Monetary Fund (IMF) projects global GDP growth at around 3.2% for both 2024 and 2025, with emerging markets anticipated to slow slightly from 4.3% to 4.2% during the same period. This backdrop underscores India's exceptional performance amidst global economic headwinds.In summary, India's position as the fastest-growing major economy is supported by strong GDP growth figures and improving fiscal health, contrasting sharply with the challenges faced by other large economies like China and Japan.
With inputs from agencies
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