Russian President Vladimir Putin has recently lauded India's economic growth, recognizing it as a prime example for other BRICS nations and highlighting the country's independent policy-making. During a recent phone call with Indian Prime Minister Narendra Modi, Putin commended India's rapid economic rise and praised Modi for charting a sovereign course for the nation, free from external influence, while simultaneously achieving remarkable economic progress.
Putin's remarks, disclosed during a meeting with members of the Russian Government, signal an appreciation for India's refusal to bow to Western pressure on global alignments. He emphasized that under Modi's leadership, India is pursuing a completely independent and sovereign policy, achieving impressive results in the economic sphere.
India's economic performance has indeed been robust. The Indian GDP expanded by 7.4% in the March quarter of 2025, accelerating from an upwardly revised 6.4% growth in the previous period. This figure surpassed market expectations of a 6.7% rise and marked the sharpest growth rate of the fiscal year. In the second quarter of 2025, the GDP grew by 7.80 percent compared to the same quarter of the previous year.
Several factors have contributed to this strong growth. Lower food and energy prices have played a significant role, easing benchmark interest rates and spurring investment. Furthermore, India's relatively low dependence on exports has made it resilient to global tariff threats. Gross fixed capital formation surged by 9.4%, marking the most significant increase in nearly two years, while private consumption expanded by 6%.
The Organisation for Economic Cooperation and Development (OECD) has also revised India's GDP forecast for 2025 upwards to 6.7% from 6.3%, citing strong domestic demand and Goods and Services Tax (GST) reforms. The GST Council has approved a simplified two-slab structure (5% and 18%) to reduce tax rates on household items, aiming to further spur consumption. Additionally, the government has announced income tax exemptions for incomes up to Rs 12 lakh.
Several organizations have presented optimistic growth projections for India. The United Nations (UN) forecasts growth of 6.3% in 2025 and 6.4% in 2026, while the Confederation of Indian Industry (CII) estimates a slightly higher range of 6.40 to 6.70%. The International Monetary Fund (IMF) has also revised its forecast for India's economic growth to 6.4% for both 2025 and 2026.
Looking ahead, India is projected to become the world's third-largest economy by 2030, with a GDP of $7.3 trillion. The country's employment rate has also surged, with 17 crore jobs created in the past decade. New reforms, such as the next-generation GST, and initiatives like the PM Viksit Bharat Rozgar Yojana are underway to realize the goal of Viksit Bharat 2047.
Russia has been a pivotal partner in India's foreign policy framework since the 2000 Strategic Partnership Declaration. The two nations have maintained a long-standing and trusted relationship, expanding bilateral ties across diverse sectors, including defense, energy, nuclear power, and trade.
