India's Consumption Surge: Driving Economic Growth to New Heights

India's private consumption has surged to unprecedented levels, marking the highest share in the country's GDP in the last twenty years. This encouraging data, revealed in the latest monthly report from the Ministry of Finance, emphasizes the increasing role of private consumption in sustaining economic growth.

According to the report, private consumption's contribution to nominal GDP rose from 60.2% in FY24 to 61.4% in FY25. The ministry attributed this growth to robust private consumption, steady investment activities, and an uptick in net exports, reinforcing consumption demand's continued strength.

Furthermore, private final consumption expenditure experienced a significant jump of 7.2% in FY25, overshadowing the 5.6% growth of the previous year. Meanwhile, exports saw a promising rise of 6.3% amid global uncertainties, with imports decreasing by 3.7%. Together, these factors underscore a balanced approach to India's growth, led by key contributors such as consumption, investment, and trade.

(With inputs from agencies.)