India's Economic Climb: Surpassing Japan on the Horizon

The Indian economy recorded a 6.5% growth in fiscal year 2024-25, reaching USD 3.9 trillion. It showed strong performance despite global challenges, driven by private consumption, construction, and manufacturing. Analysts suggest solid agricultural growth and easing inflation could continue to bolster economic progress.

The Indian economy surged ahead with a robust 6.5% growth in the 2024-25 fiscal year, as reported by the National Statistics Office. This positions India as the world's fifth-largest economy, inching closer to Japan's USD 4.19 trillion economy.

Exceeding expectations, India witnessed a 7.4% growth in the last quarter, buoyed by a rise in private consumption, construction, and manufacturing. However, concerns about global headwinds and tariff uncertainties remain.

Economic leaders indicate that India's growth is underpinned by strong agriculture and easing inflation, projecting continued momentum. Yet, challenges like trade barriers and investment hesitancy may hinder the pace in future quarters.

(With inputs from agencies.)