India's Economic Resilience in 2025: Navigating Global Headwinds with Domestic Strength

The Indian economy in 2025 continues to display remarkable resilience, driven by reorientation, reform, and robust fundamentals. Despite global challenges such as trade tensions and geopolitical uncertainty, India has sustained strong growth. This momentum has been powered by digital innovation, strategic public spending, and resilient domestic consumption.

- Madhusudhanan S

A Year at an Economic Crossroads

For India, 2025 represents a decisive moment — a year at the crossroads of stability and transformation. Amid global inflationary pressures, volatile capital flows, and supply chain disruptions, India stands out as a beacon of stability and confidence.

According to the Reserve Bank of India's State of the Economy report and the Economic Survey 2025, the country's macroeconomic fundamentals remain solid. Let us look at some of the key indicators that underscore this strength.

Key Economic Indicators (2025)

1. GDP Growth:

As per estimates by the National Statistics Office (MoSPI), real GDP is projected to grow by 7.8% in Q1 of FY 2025-26, up from 6.5% in the same quarter of FY 2024-25. This reflects a sustained growth trajectory despite global uncertainties.

2. Inflation:

Headline inflation has moderated to 4.5%, aided by stable food prices and effective monetary management. Year-on-year, the All India Consumer Price Index (September 2025 vs. September 2024) rose by 1.54%, while the Consumer Food Price Index declined by 2.28%, reflecting easing pressures in food inflation.

This moderation was supported by timely monetary tightening in earlier quarters.

3. Trade and Fiscal Position:

During April-September 2025, India's imports rose to $375.11 billion from $358.85 billion, while exports increased to $220.12 billion from $213.68 billion in the same period last year.