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Brinks Report > Blog > Economy > India’s Economic Growth Stuns the Globe—What’s Driving It?
Economy

India’s Economic Growth Stuns the Globe—What’s Driving It?

Dolon Mondal
Last updated: May 17, 2025 4:54 pm
Dolon Mondal
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India is now the world’s fastest-growing major economy, with a projected 6.3% GDP growth in 2025, according to the United Nations’ latest World Economic Situation and Prospects (WESP) report.

That’s not just impressive—it’s exceptional in a time when most large economies are barely staying afloat.

Trulli

India is building, investing, and exporting at record levels. Jobs are being created. Inflation is being kept in check. Capital markets are booming.

And our homegrown defence industry is now shipping to nearly 100 countries.

In simple terms? While others talk about recovery, India is already accelerating.

Capital Markets: Record Highs, Real Confidence

As of December 2024, India’s stock market hit all-time highs, beating most emerging markets. Retail participation skyrocketed—from 4.9 crore investors in FY20 to over 13.2 crore by end-2024. That’s not just market confidence. That’s citizen trust in India’s economic future.

The IPO boom tells a similar story. From April to December 2024, IPOs jumped 32.1%. Capital raised nearly tripled—from ₹53,023 crore to a whopping ₹1,53,987 crore. According to UN data, India contributed 30% of all IPOs globally—more than any other country.

India’s Ascent Amid Global Headwinds:

UN Report Ranks India Fastest-Growing Major Economy with 6.3% GDP Growth

At a time when the global economy is facing what the United Nations calls a “precarious moment,” India has emerged as a rare bright spot. The mid-year update of the… pic.twitter.com/G7Wr20RRN2

— PIB India (@PIB_India) May 16, 2025

Manufacturing: Built to Last

India’s manufacturing sector isn’t just back—it’s booming. Over the last decade, GVA from manufacturing rose from ₹15.6 lakh crore (2013–14) to an estimated ₹27.5 lakh crore in 2023–24. While other economies wrestle with supply chain breakdowns, India has quietly become a global production powerhouse.

Government policies, Make in India, and resilient demand have created stable, long-term growth. No shortcuts. No stimulus gimmicks. Just real output.

Exports: New Highs, New Sectors

In 2024–25, India’s total exports hit a record $824.9 billion. That’s a huge jump from $466.2 billion a decade ago. More importantly, services exports—our secret weapon—soared 13.6% year-on-year to $387.5 billion.

Even merchandise exports (excluding petroleum) crossed $374.1 billion, up from $352.9 billion last year. And what’s leading the charge? High-value sectors like defence, electronics, and machinery.

Defence: From Importer to Exporter

Ten years ago, we imported almost everything. Today, we’re selling Made-in-India defence equipment to nearly 100 countries.

Defence production rose from ₹46,429 crore (2014–15) to ₹1,27,434 crore in 2023–24—a 174% jump. Exports grew 34-fold—from ₹686 crore to ₹23,622 crore in just a decade. That’s Atmanirbhar Bharat in action—not just a slogan.

So, What’s the Catch?

There isn’t one. India is growing because Indians are building. It’s not about borrowed prosperity or over-leveraged stimulus. It’s real demand, real production, and real optimism.

While some global powers print money and pray for a soft landing, India is engineering takeoff.

Also Read Defence ETFs Jump 17% in a Week—But Should You Join the Rally?

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