INDIA'S ECONOMIC OUTLOOK 2025: NAVIGATING CHALLENGES AND SEIZING OPPORTUNITIES

As the year 2025 begins, India is facing a major turning point in its economic development. It is expected that the nation's GDP will grow by 6.3% to 6.6% this year, keeping it among the fastest-growing major economies. Private consumption, substantial infrastructure investment, and an expanding digital economy drive this growth. At the same time, issues such as strict rules, unequal income, environmental issues, and unpredictable global markets are still present. The way India manages these problems will shape its future in the coming years.

- BARIK HILAL ZARGAR

The growth rate in India's economy has slowed slightly, but it is still strong. The economy is still growing due to strong demand within the country. Private consumption leads the way in India's economy, thanks to young people and rising demand from rural areas. Improved agricultural output thanks to the monsoon in 2024 should increase spending in rural areas. People in cities have better living standards now because their income and financial options have gone up.

Developing infrastructure is expected to be a key factor in the Indian economy's growth in 2025. The National Infrastructure Pipeline (NIP) with a value of 2 lakh crore (about US$1.4 trillion) has more than 7,400 projects that support building roads, energy systems, railways, and urban services. Also, the PM Gati Shakti initiative focuses on building a network of integrated and multi-modal infrastructure, which helps to cut logistics expenses and improve productivity. The Sagarmala Programme helps make the most of India's coastline and inland waterways to boost port development and trade.

In FY 2022-23, the digital sector played a key role in India's GDP, adding about 12%, and is still growing very fast. India's large internet user population has resulted in a growth of digital services, fintech development, and e-commerce. Thanks to Digital India and BharatNet, rural areas now have better internet access, helping to include more people in the digital economy. The IT-BPM industry of India is doing well because it has skilled labor, new clients, and is advancing in Al, cloud, and cybersecurity. The Al sector is predicted to grow to $8 billion by the end of 2025, helping to boost productivity in healthcare, education, finance, and manufacturing.