India's accelerating economic growth is attracting significant attention from global CEOs, with many making substantial investments in the country. This bullish sentiment is supported by various economic forecasts and indicators, suggesting a promising future for the Indian economy.
Several factors contribute to this optimism. The International Monetary Fund (IMF) has revised India's economic growth forecast upwards to 6.4% for both 2025 and 2026, reaffirming its position as the world's fastest-growing major economy. This revision reflects a more benign external environment than previously anticipated. The Reserve Bank of India (RBI) projects a real GDP growth of 6.5% for FY 2025-26, driven by strong domestic demand and government capital expenditures. Above-average monsoon rainfall is expected to boost the agricultural sector, further strengthening demand in rural areas.
Foreign Direct Investment (FDI) inflows into India remain robust. In FY 2024-25, India recorded FDI inflows exceeding US$50 billion, a 13% increase from the previous fiscal year. Gross inward FDI in April 2025 stood at $8.8 billion, higher than previous months and years. The services sector has emerged as the top recipient of FDI equity, followed by computer software and hardware. The Indian government is actively scaling up manufacturing capabilities and streamlining foreign investment regulations to further enhance its attractiveness as an investment destination.
Several global companies are increasing their investments and expansion plans in India. Apple has seen revenue growth driven by smartphones, Macs, and services, and plans to open new retail stores in India. CEO Tim Cook has emphasized the importance of India for Apple's growth trajectory. Other companies like Coca-Cola, Unilever, and Domino's are also investing more in the Indian market, anticipating a revival in demand after a period of slowdown.
According to PwC's 28th Annual Global CEO Survey, India ranks among the top five investment destinations for global CEOs, alongside the US, UK, Germany, and China. The survey reveals that 87% of Indian CEOs are optimistic about the country's economic growth, significantly higher than the global average. Furthermore, 74% of India CEOs are confident in their companies' revenue growth over the next three years, driven by strong economic fundamentals, ease of doing business, and a young, skilled workforce.
The Indian government's focus on infrastructure development is a key pillar for promoting economic growth. Effective capital expenditure is budgeted to grow significantly in FY 2025-26, while the fiscal deficit is projected to decline due to strong nominal GDP growth and higher tax revenues. The government has also undertaken transformative reforms to liberalize FDI norms across various sectors.
Despite the overall positive outlook, some challenges remain. These include macroeconomic volatility, inflation, and the shortage of skilled labor. Some reports indicate a decrease in net FDI due to capital repatriation from IPO exits and increased outward investments by Indian firms. However, the long-term growth potential of the Indian economy and the government's commitment to reforms continue to attract global investors.
In conclusion, the Indian economy is experiencing accelerating growth, driven by strong domestic demand, government investments, and a favorable external environment. This growth is attracting significant investments from global CEOs, who are optimistic about India's future. While challenges remain, the overall outlook for the Indian economy is positive, with projections indicating continued growth and increasing global influence.
