India's Economic Surge in 2024-25: Fastest-Growing Major Economy

India has once again cemented its status as the world's fastest-growing major economy, clocking a 6.5% GDP growth rate for the fiscal year 2024-25. According to industry body Assocham, the country witnessed a significant economic pick-up, particularly in the second half of the year, concluding with a remarkable 7.4% growth during the March quarter.

The surge was driven by robust domestic demand and strategic public infrastructure investments, amidst global supply chain shifts that increasingly favor India. Sanjay Nayar, President of Assocham, highlighted the pivotal roles of the construction, manufacturing, and services sectors in this growth trajectory, emphasizing India's reinforced macroeconomic stability and leadership in global growth.

The sustained economic expansion has propelled the Indian economy's size to USD 3.9 trillion, with projections to surpass Japan as the world's fourth-largest economy by FY26. While the 6.5% growth marks a deceleration from the previous year's 9.2%, it remains in alignment with governmental forecasts, signifying a robust cyclical rebound driven by increased private consumption.

(With inputs from agencies.)