India's Economy Soars in 2025: Six Forces Drive Unprecedented Growth & Market Boom

• India emerged as a top global growth engine, with RBI forecasting 7.3% GDP growth for FY26 and IMF projecting 6.5% for 2025/26, driven by strong domestic demand.
• Government investment in infrastructure, manufacturing, and renewable energy, alongside robust FDI and services exports, anchored broad-based economic expansion.
• Headline inflation hit a record low of 0.25% in October, leading RBI to cut the repo rate by 125 basis points to 5.25%, making credit cheaper and boosting investment.
• Strong services exports (IT, BPO) and remittances ensured external resilience despite global headwinds, maintaining a steady current account position.
• An historic IPO boom saw 86 listings raise ₹1.71 lakh crore, while domestic investors, through SIPs and increased Demat accounts, provided crucial stability to equity markets.

Why It Matters: Macroeconomic stability, strategic policies, and strong market sentiment propelled India's transformative economic growth in 2025.