Defense Minister Rajnath Singh has recently described India's economy as the world's most "dashing and dynamic," a statement made in the context of global economic headwinds and, seemingly, in response to certain nations attempting to undermine India's progress. Singh's remarks highlight India's remarkable economic resilience and its growing stature on the global stage.
India's economic performance has been noteworthy. In the final quarter of the fiscal year 2024-25, the economy grew by 7.4% year-over-year, bringing the full fiscal year growth to 6.5%. This performance is especially significant considering the backdrop of elevated interest rates and geopolitical tensions that have characterized the global economic landscape. The Reserve Bank of India (RBI) projects that this growth rate will continue into fiscal year 2025-26, signaling sustained momentum.
Several factors contribute to India's positive economic outlook. A resilient consumer base, a broadening investment landscape, and a digitally skilled workforce are key engines driving growth. Urban spending is on the rise, and private capital expenditures are showing promising signs of growth. Moreover, India's tech-adaptive talent pool is fostering innovation and demonstrating its capabilities on a global scale.
The government's focus on infrastructure development is also playing a crucial role. Capital expenditure is budgeted to grow substantially in fiscal year 2025-26, with a focus on infrastructure projects that are vital for promoting long-term economic growth. This investment is expected to be carried out while maintaining fiscal discipline, with the fiscal deficit projected to decline from 4.8% of GDP to 4.4% of GDP.
Easing inflation is another factor bolstering India's economic prospects. The Consumer Price Index (CPI) inflation rate stood at 2.82% in May 2025, the lowest level since February 2019. Lower inflation is expected to boost consumer confidence and purchasing power, leading to increased spending across various sectors.
However, India's economic ascent has not been without its challenges. Singh criticized those who are attempting to hinder India's progress through tariffs and trade barriers. While he did not explicitly name the countries, his comments alluded to the high tariffs announced by the U.S., with Singh referring to those with the attitude of "we are everyone's boss". He implied that some entities are finding it difficult to accept India's rapid development. According to Singh, efforts are underway to make Indian products more expensive to deter global buyers, but he asserted that no power in the world could stop India from becoming a major global power.
Despite these challenges, India's defense exports are continuing to grow, reaching a value of over Rs 24,000 crore. This demonstrates the strength of India's defense sector and the capabilities of the "new India".
India's economic expansion over the past decade has been remarkable. Between fiscal year 2014-15 and 2024-25, India's GDP at current prices has almost tripled. Real GDP growth was estimated at 6.5% in 2024-25, and the RBI expects this pace to continue. This sustained performance is driven by strong domestic demand, easing inflation, robust capital markets, and rising exports.
India's economic fundamentals remain strong, and the country is well-positioned for continued growth. The government's policies, combined with the resilience of the Indian people, are driving the nation towards becoming a global economic powerhouse.
