India’s economy in 2025 reflects a rare alignment of strong growth, easing inflation, improving employment conditions, and resilient external sector indicators. Real GDP growth accelerated in FY 2025–26, unemployment declined to multi-month lows, and inflation remained comfortably within the Reserve Bank of India’s tolerance band.
- Key Takeaways: India’s Growth and Stability in 2025
- India’s Growth Momentum Strengthens in FY 2025–26
- Employment Trends Improve as Unemployment Declines
- Rising Labour Participation Signals Inclusive Growth
- Inflation Remains Benign, Strengthening Policy Space
- RBI Adjusts Monetary Policy Amid Growth-Inflation Balance
- Trade Performance Strengthens Through 2025
- Services Exports and External Sector Show Resilience
- Global Institutions Upgrade India’s Growth Outlook
- India’s Growth Trajectory in a Stable Global Context
- Spiritual Contribution to Inclusive Growth
- FAQs on India’s Economic Growth in 2025
Trade performance strengthened across merchandise and services exports, while foreign exchange reserves remained robust. With supportive monetary policy, improving labour market participation, and upgraded growth projections by domestic and global institutions, India’s macroeconomic fundamentals indicate a phase of stability and momentum amid global uncertainties.
Key Takeaways: India’s Growth and Stability in 2025
- Real GDP grew 8.2% in Q2 FY 2025–26, a six-quarter high
- CPI inflation softened to 0.71% in November 2025
- Unemployment declined to its lowest level since April 2025
- Merchandise exports rose to US$ 38.13 billion in November 2025
- RBI revised FY 2025–26 growth forecast upward to 7.3%
- External sector remained resilient with strong forex reserves and moderating CAD
India’s Growth Momentum Strengthens in FY 2025–26
India remained among the world’s fastest-growing major economies, supported by resilient domestic demand and steady structural reforms. Real GDP expanded by 8.2% in Q2 of FY 2025–26, rising from 7.8% in Q1 and 7.4% in Q4 of FY 2024–25. Real Gross Value Added (GVA) also increased by 8.1%, led by buoyant industrial and services sectors.
Source:PIB
According to the International Monetary Fund World Economic Outlook Report (April 2025), India, with a GDP of USD 4.18 trillion, surpassed Japan to become the world’s fourth-largest economy. The report projected India to displace Germany from the third rank within 2.5 to 3 years, with GDP expected to reach USD 7.3 trillion by 2030.
High-frequency indicators continued to point to sustained economic activity, supported by robust private consumption, benign financial conditions, and strengthening urban demand.
Employment Trends Improve as Unemployment Declines
Employment outcomes improved notably in 2025, reflecting stronger workforce absorption into productive activity. With nearly 26% of India’s population aged 10–24, employment generation remained central to inclusive growth.
Read More: India beat Japan to Become the World’s Fourth-Largest Economy
The Periodic Labour Force Survey (PLFS), launched by the National Statistics Office in 2017–18, showed a sharp decline in unemployment alongside improvements in labour force participation and worker population ratios.
- In November 2025, the unemployment rate (CWS) for persons aged 15 and above declined to 4.8%, from 5.4% in October 2025
- This marked the lowest level since April 2025 (5.1%)
- Unemployment among urban women declined from 9.7% to 9.3%
- Rural women’s unemployment fell from 4.0% to 3.4%
- Rural unemployment declined to 3.9%, while urban unemployment eased to 6.5%
These trends highlighted strengthening labour market conditions driven by rural employment gains and rising female participation.
Rising Labour Participation Signals Inclusive Growth
Alongside falling unemployment, labour force participation and worker population ratios improved steadily.
- A seven-month high to LFPR (55.8%)
- Worker Population Ratio (WPR) increased to 53.2% in November, from 52.5% in October and 51.2% in June
The data indicated broader workforce engagement and improving job absorption across sectors.
Inflation Remains Benign, Strengthening Policy Space
Inflation trends in 2025 reaffirmed the effectiveness of India’s inflation-targeting framework. CPI inflation softened progressively from 4.26% in January to 2.10% in June, before declining to historic lows around 0.25% in October. By November, CPI edged up modestly to 0.71%, remaining well within the Reserve Bank of India’s prescribed tolerance band of 4% ± 2%.
Wholesale Price Index (WPI) inflation mirrored this moderation:
- WPI inflation stood at 2.31% in January 2025
- It declined to 0.85% in April
- By November 2025, provisional WPI inflation turned negative at -0.32%
Source:PIB
The easing of retail and wholesale price pressures contributed to a conducive macroeconomic environment.
RBI Adjusts Monetary Policy Amid Growth-Inflation Balance
Against this backdrop, the Reserve Bank of India reduced the policy repo rate by 25 basis points to 5.25%, maintaining a neutral stance. The move reflected a balance between supporting growth and managing inflation, aided by a benign inflation outlook.
Read More: A “Jobless Future” for India’s Middle Class | Rise of Gig Economy 2026
The RBI revised its GDP growth forecast for FY 2025–26 upward from 6.8% to 7.3%, citing robust domestic demand, GST rationalisation, softer crude prices, front-loaded government capital expenditure, and supportive financial conditions.
Trade Performance Strengthens Through 2025
India’s foreign trade began 2025 on a solid footing. In January 2025, total exports (merchandise and services combined) stood at US$ 74.97 billion, registering 9.72% growth year-on-year. By June, cumulative exports for April–June reached US$ 210.31 billion.
Merchandise exports strengthened steadily:
- January 2025: US$ 36.43 billion
- November 2025: US$ 38.13 billion
Key contributors included engineering goods, electronic goods, pharmaceuticals, gems and jewellery, petroleum products, cashew, marine products, and other cereals.
Merchandise Export Growth in 2025 (In USD Million)
| Commodities | Jan’2025 | Nov’2025 | Growth |
| Cashew | 34.93 | 57.42 | 64.39% |
| Marine Products | 540.75 | 877.65 | 62.30% |
| Other Cereals | 28.36 | 37.53 | 32.33% |
| Electronic Goods | 4105.46 | 4813.66 | 17.25% |
| Engineering Goods | 9418.06 | 11012.20 | 16.93% |
| Coffee | 115.73 | 134.83 | 16.50% |
| Petroleum Products | 3561.76 | 3931.52 | 10.38% |
| Ceramic Products and Glassware | 326.43 | 355.17 | 8.80% |
| Spices | 343.01 | 358.46 | 4.50% |
| Fruits and Vegetables | 303.16 | 314.47 | 3.73% |
India expanded trade partnerships with the United Kingdom, Oman, and New Zealand, while increasing trade with China, Hong Kong, Brazil, Italy, France, Australia, UAE, Belgium, and Germany.
Services Exports and External Sector Show Resilience
Services exports remained a key pillar of external stability, expanding by 8.65% to USD 270.06 billion during April–November 2025. Strong performance in computer and business services underpinned this growth.
As of November 28, 2025, India’s foreign exchange reserves stood at US$ 686.2 billion, providing over 11 months of import cover.
The current account deficit moderated from 2.2% of GDP in Q2 FY 2024–25 to 1.3% in Q2 FY 2025–26, supported by a 10.7% year-on-year increase in inward remittances.
Global Institutions Upgrade India’s Growth Outlook
Global agencies upgraded India’s growth projections, reflecting confidence in its macroeconomic fundamentals:
- World Bank: 6.5% growth in 2026
- Moody’s: 6.4% in 2026, 6.5% in 2027
- OECD: 6.7% in 2025, 6.2% in 2026
- Asian Development Bank: 7.2% in 2025
- Fitch Ratings: 7.4% for FY26
- IMF: 6.2% for 2026
India’s Growth Trajectory in a Stable Global Context
India’s macroeconomic environment in 2025 presented a rare phase of high growth combined with low inflation. Supported by strong domestic demand, falling unemployment, resilient trade, and stable financial conditions, the economy demonstrated broad-based momentum. With continued reforms and favourable external engagement, the outlook remained aligned with India’s long-term development goals toward 2047.
Spiritual Contribution to Inclusive Growth
Economic indicators such as GDP growth reflect the collective contribution of every section of society. Still, particularly in India, despite having such growth, people face trouble during the period of natural calamities and face aftermaths financially as well. The government support has always proved to be insufficient, especially during the recent floods in the northern part of the country in 2025 but the power of One Saint restored humanity from destruction, His name is Jagatguru Tatvdarshi Sant Rampal Ji Maharaj, Who is on a mission to revive humanity from destruction.
During recent floods, when large areas of farmland were submerged and farmers faced severe losses, Tatvdarshi Sant Rampal Ji Maharaj emerged as a support system at the grassroots level. When administrative assistance proved insufficient, He extended large-scale help by providing pipelines and motors worth crores to farmers across nearly 450 villages in Haryana, Punjab, Uttar Pradesh, Rajasthan, Himachal Pradesh, and Uttarakhand. Farmers acknowledged this timely intervention, which helped restore livelihoods and agricultural activity.
Through His Annapurna Muhim, He is also supporting underprivileged families with food, clothing, healthcare, education, shelter, and other basic needs as well, enabling vulnerable citizens to become productive contributors to the economy rather than liabilities. He is empowering the nation by preventing a severe breakdown in the growth of the nation.
Despite being in an era of numerous sages, Sant Rampal Ji Maharaj was the only one Who came forward with this incredible initiative of Annapurna Muhim, helping millions of people. The power in the word of the singular Complete Saint of this era, Sant Rampal Ji Maharaj, is the working force behind it. His completeness in every aspect of spirituality makes Him one of the greatest reformers of all-time.
For more information visit our
Website: www.jagatgururampalji.org
YouTube: Sant Rampal Ji Maharaj
Facebook: Spiritual Leader Saint Rampal Ji
X (Twitter): @SaintRampalJiM
FAQs on India’s Economic Growth in 2025
1. What was India’s GDP growth in Q2 FY 2025–26?
India’s real GDP grew 8.2%, marking a six-quarter high.
2. How did inflation trend in 2025?
CPI inflation softened to 0.71% in November 2025, remaining within RBI’s tolerance band.
3. What happened to unemployment in 2025?
Unemployment declined to 4.8% in November, the lowest since April 2025.
4. How did exports perform during 2025?
Merchandise exports rose steadily to US$ 38.13 billion by November 2025.
5. What is India’s forex reserve position?
Forex reserves stood at US$ 686.2 billion as of November 28, 2025.
