India is projected to maintain its status as the world’s fastest-growing major economy in the coming years. According to a recent report, India’s economic growth is expected to reach 6.6% in 2025, driven by robust public infrastructure investments and a surge in household real estate spending.
This growth is anticipated despite a global economic slowdown, with the United Nations forecasting a subdued 2.8% global growth rate for 2025. The resilience of India’s economy is attributed to strong performances in the manufacturing and services sectors, which have compensated for underperformance in agriculture.
The World Bank’s India Development Update observes that India grew at a rapid pace of 8.2% in the fiscal year 2023-2024, bolstered by significant public infrastructure investments and increased household investments in real estate. On the supply side, this growth was supported by a buoyant manufacturing sector, which grew by 9.9%, and resilient services activity.
However, challenges remain, including stagnant wages affecting domestic consumption and slowing global demand. Despite these hurdles, India’s economy is expected to continue its robust growth trajectory, solidifying its position as a leading global economic player.
