India’s economy shows strong growth momentum amid falling inflation and rising exports

New Delhi: India’s economy continued to show strong momentum in 2025, supported by higher GDP growth, easing inflation, improving employment figures and steady export performance, according to the latest government data.

The country’s real GDP growth touched 8.2% in the second quarter of FY 2025-26, higher than 7.8% in the previous quarter. The Reserve Bank of India (RBI) has also revised its annual growth projection upward to 7.3%, reflecting confidence in domestic demand and industrial activity.

Government data showed that inflation remained under control during the year. Consumer Price Index (CPI)-based inflation, which stood at 4.26% in January 2025, gradually declined to 0.71% by November. Lower food prices and stable supply conditions helped ease inflationary pressure across major consumption categories.

The RBI has projected CPI inflation for FY 2025-26 at around 2%, while also reducing the repo rate by 25 basis points to support economic growth.

Employment indicators also improved during the year. The unemployment rate for people aged 15 years and above dropped to 4.8% in November 2025 from 5.4% in October. Rural unemployment touched a record low of 3.9%, while women’s participation in the workforce showed improvement in both rural and urban areas.

Labour Force Participation Rate (LFPR) rose to 55.8% in November, indicating more people entering the workforce. The Worker Population Ratio (WPR) also increased to 53.2%, reflecting stronger job creation and recovery in labour demand.

India’s export sector remained resilient despite global trade uncertainties. Merchandise exports increased from USD 36.43 billion in January 2025 to USD 38.13 billion in November 2025.

Engineering goods, electronic goods, marine products, coffee, petroleum products and agricultural commodities such as cashew and cereals contributed significantly to export growth. Services exports also rose by 8.65% during April-November 2025, driven by strong performance in IT and business services.

Foreign exchange reserves stood at USD 686.2 billion by the end of November 2025, providing more than 11 months of import cover and strengthening India’s external sector position.

The government said India continues to remain one of the fastest-growing major economies in the world, supported by strong domestic consumption, infrastructure spending, stable financial conditions and improving global trade partnerships.