India’s capital markets have performed a pivotal position in channeling home financial savings into funding. As of December 2024, the inventory market reached report highs, outperforming many different rising markets regardless of world and home headwinds.
At a time when the worldwide financial system is grappling with uncertainty, India has emerged as a uncommon vivid spot, the United Nations mid-year report confirmed. The United Nations’ World Financial Scenario and Prospects (WESP) replace initiatives India’s GDP to develop by 6.3 per cent within the present fiscal 12 months—making it the fastest-growing giant financial system. The momentum is anticipated to proceed into 2026, with development estimated at 6.4 per cent.
This sturdy efficiency stands in distinction to a subdued world outlook, weighed down by rising commerce tensions, coverage uncertainties, and declining cross-border investments.
India’s development is being fuelled by strong home demand and sustained authorities spending. These have helped keep employment ranges and comprise inflation, which is forecast to fall to 4.3 per cent in 2025—comfortably inside the Reserve Financial institution of India’s goal vary.
Investor confidence stays sturdy, mirrored in report good points throughout inventory indices. Manufacturing is on the rise, supported by beneficial insurance policies and resilient exterior demand. Strategic sectors like defence manufacturing are main the export surge, underscoring India’s rising financial energy.
Capital markets hit new highs
India’s capital markets have performed a pivotal position in channeling home financial savings into funding. As of December 2024, the inventory market reached report highs, outperforming many different rising markets regardless of world and home headwinds.
Retail investor participation has surged from 4.9 crore in FY20 to 13.2 crore by December 2024—a testomony to long-term confidence in India’s financial potential.
The first market additionally noticed exceptional exercise, with IPOs rising 32.1 per cent to 259 between April and December 2024. Capital raised almost tripled to Rs 1,53,987 crore from Rs 53,023 crore within the earlier 12 months. India’s share of world IPO listings jumped from 17 per cent in 2023 to 30 per cent in 2024, making it the world’s prime contributor to IPO-led capital mobilisation.
Manufacturing sees decade-long enlargement
India’s manufacturing sector has steadily expanded over the past decade. In line with the Ministry of Statistics and Programme Implementation, the Gross Worth Added (GVA) from manufacturing at fixed costs rose from Rs 15.6 lakh crore in 2013–14 to an estimated Rs 27.5 lakh crore in 2023–24. The sector’s share within the financial system remained steady, from 17.2 per cent to 17.3 per cent.
This development displays not solely regular home demand but additionally profitable coverage interventions and provide chain resilience.
Exports hit all-time highs
India’s whole exports reached a report USD 824.9 billion in 2024–25, up 6.01 per cent from the earlier 12 months. It is a vital leap from USD 466.2 billion in 2013–14, exhibiting constant development over the previous decade.
Providers exports proceed to be the primary driver, rising 13.6 per cent year-on-year to an all-time excessive of USD 387.5 billion. In March 2025 alone, companies exports rose 18.6 per cent to USD 35.6 billion.
Merchandise exports excluding petroleum additionally posted report good points, hitting USD 374.1 billion in 2024–25, up from USD 352.9 billion the 12 months earlier than. This development underlines India’s increasing manufacturing base and its transfer into high-value sectors like defence manufacturing.
Defence sector breaks new floor
India’s defence sector has seen transformational development. Indigenous defence manufacturing rose to Rs 1,27,434 crore in 2023–24—a 174 per cent enhance from Rs 46,429 crore in 2014–15. In the meantime, defence exports soared from Rs 686 crore in 2013–14 to Rs 23,622 crore in 2024–25, marking a 34-fold enhance over a decade.
In the present day, Indian defence merchandise are shipped to almost 100 international locations, reflecting India’s emergence as a reputable world provider of strategic tools. Authorities-led initiatives aimed toward attaining Atmanirbharta (self-reliance) have performed a key position in boosting each manufacturing and exports.
India’s financial trajectory, as highlighted within the UN’s mid-year report, tells a narrative of resilience, reform, and rising world relevance. From vibrant capital markets and increasing manufacturing to record-breaking exports and a booming defence sector, the nation’s progress is broad-based and sustainable.
Rooted in sound coverage choices and powered by sturdy home fundamentals, India will not be solely navigating world financial challenges—it’s rising as a key architect of the following section of world development.