What happened?
India’s Gross Domestic Product (GDP) has doubled in size over the last ten years, according to the latest data released by the International Monetary Fund (IMF). The data revealed that India’s GDP at current prices stood at USD 2.1 trillion in 2015 and is projected to reach USD 4.27 trillion by the end of 2025, marking a 100 per cent increase.
The IMF reported that India’s real GDP growth rate for 2025 is 6.5 per cent, making it one of the fastest-growing economies in the world. Inflation is expected to remain at 4.1 per cent, within the Reserve Bank of India’s (RBI) target range of 4 to 6 per cent. The IMF also highlighted that India’s GDP per capita, in terms of purchasing power parity (PPP), is estimated at USD 11,940. However, the report noted that India’s general government gross debt stands at 82.6 per cent of GDP, indicating fiscal challenges despite strong growth.
Why it matters to India
India’s doubling of GDP underscores its robust economic expansion over the past decade, driven by domestic consumption, services growth, and infrastructure investments. The 6.5 per cent real GDP growth rate reflects the country’s resilience amid global uncertainties. However, the high public debt poses a challenge to fiscal stability, potentially limiting the government’s flexibility for future spending. The improvement in GDP per capita signals rising individual prosperity, though income inequality remains a concern. Maintaining inflation within RBI’s target range is critical for preserving purchasing power and sustaining economic momentum.
