Gross Domestic Product

Regional imbalances must also be addressed, with broader participation beyond the dominant five or six states. Individual state roadmaps aligning with the national "Viksit Bharat" vision are under development.

India is projected to be the primary driver of global economic growth in 2025 and 2026, fueled by strong economic fundamentals and a positive outlook despite global uncertainties.

ICICI Bank estimates India's Q4 FY25 GDP growth at 7%, driven by government spending and rural demand. This brings the estimated FY25 GDP growth to 6.3%, slightly below the government's 6.5% projection.

The minister highlighted this during her address to the Indian diaspora in San Francisco at the India Community Centre, where she spoke about India's emerging leadership in the global economy.

While India's GDP growth has largely remained resilient to global shocks -- barring the Global Financial Crisis (GFC) in 2008 and the COVID-19 pandemic -- the impact on specific sectors like exports and ports has been more visible.

The president of the industry body further stated that India's strong industrial competitiveness will balance the impact of US tariff announcements, and GDP will see only a 0.1 per cent impact in the short term.

India’s GDP has doubled from $2.1 trillion to $4.2 trillion in 10 years, driven by robust reforms, industrial expansion, and digital transformation. With sustained growth, India is set to become the third-largest global economy by 2028.

On the domestic front, India is set for a substantial defence push. The government has announced plans to place Rs 1.5 trillion worth of large-scale defence orders by March 2025. This move, aimed at addressing slow ordering momentum in FY25, is expected to provide a significant boost to defence stocks.

The Indian economy expanded at a faster rate of 6.2 per cent in Q3FY25, compared to 5.58 per cent in Q2FY25. However, the growth rate was slightly below expectations, which were pegged at 6.3 per cent.

The SBI report has also revised India's full-year GDP growth estimate for FY25 to 6.5 per cent, up from the earlier estimate of 6.4 per cent in the First Advance Estimates (FAE) published on January 7.