Mumbai: India’s economic outlook remains positive, with recent volatility in the stock market and outflows by foreign investors. This week a report from the International Monetary Fund (IMF) reaffirmed the confidence of the nation and its rapid growth, buoying back up through the challenges.
India is indeed among the fastest-growing nations in the world, faster, at this time, than either the US or China. This claim can be justified with concrete numbers, as institutions like the World Bank and the IMF appreciate India’s achievements as a nation. IMF data put India at the top of the chart of 20 global economies that are surging the most in terms of growth rate, ahead of China and the US.
India’s GDP has more than doubled in the past ten years. The country’s GDP was $2.4 trillion in 2015, while it is estimated to be $4.3 trillion in 2025—an impressive upward trend.
Several important sectors have led this rapid pace of economic expansion. Despite experiencing robust growth in the last decade, the manufacturing, core sectors, and services remain unexplored. When compared to Europe and the US, India’s inflation rate is also falling at a relatively rapid pace, which also shows the strength of its economy and its stability.
Even before the IMF team report, the German broking house Deutsche Bank had claimed that the slow decline of the Indian economy was over. The report warned of “many challenges ahead” after GDP growth dipped to a seven-quarter low of 5.4% in the September quarter. But the December quarter estimates show a bounce back to 6.2%. Although economic activity is picking up, GDP growth is likely to remain just below the potential of 18 in 2025–26, analysts said.
India shines bright in Global Economy rankings!!
India holds the 5th rank in the World’s Top #Economies with a remarkable chained real #GDP of $4.3 Trillion in 2025.
Compared to $2.4 Trillion in 2015, India’s GDP soared significantly in 2025 along with the highest… pic.twitter.com/h5ZjLP7HqJ
— NITI Aayog (@NITIAayog) February 27, 2025
Due to revisions in past data, analysts have also urged caution about economic projections. Currently, 65 important economic indicators suggest that the GDP growth will be 6.2%, Deutsche Bank said. Likewise, the State Bank of India (SBI), which is the largest bank in the country, expects Q3 GDP growth at 6.3%, the same as that projected by the National Statistical Office (NSO).
To prop up economic momentum, India’s banking regulator has also moved early. The MPC cut the repo rate by 0.25% last month, marking the first reduction since February 2009. We would expect such a policy change to further boost economic activity. Deutsche Bank expects another 25 basis points cut from the Reserve Bank of India in April. This week saw analysts suggest interest rates could be cut by a total of 1.50% with rate cuts no more than six times over the course of the year.
The World Bank, too, has joined the IMF and Deutsche Bank in reaffirming its confidence in the Indian economic outlook. Declaring the international lender’s continued optimism over India’s growth prospects, World Bank Country Director Auguste Tano Kouame said on Monday at a media event on the sidelines of the ‘Advantage Assam 2.0’ business summit that the country will be more of a 7-8 percent growth engine in the upturn. He pointed out that the growth rate fluctuations are minimal and the foreign investors should not worry about that, and today India is a golden opportunity for all global investors.