Indian economy tripled in 10 years, govt note reveals
What's the story
The Indian economy has nearly tripled in size over the last decade, a government note revealed on Sunday. The document emphasized that the current relief from inflation is not a temporary phase. It projected that India's GDP at current prices, which stood at ₹106.57 lakh crore in FY15, will reach ₹331.03 lakh crore by FY25, almost three times its value in 10 years.
Growth outlook
Real economic growth rate is at 6.5% in FY25
The note also highlighted India's real economic growth rate at 6.5% in FY25, which is likely to remain stable this year. The government has projected a growth range of 6.3-6.8% for FY26. Despite fragile global conditions such as trade tensions and declining cross-border investments, India continues to be a bright spot with rising rural consumption, urban spending, and private investment.
Inflation analysis
Retail inflation hit a 75-month low of 2.82% in May
The note also focused on the current trend of retail and wholesale inflation rates, which are providing relief to households and businesses alike. Retail inflation hit a 75-month low of 2.82% in May while wholesale inflation dropped to a 14-month low of 0.39%. Food prices, which have a major impact on overall inflation, also cooled with the Consumer Food Price Index recording an inflation rate of just 0.99% in May, the lowest since October 2021.
Future predictions
RBI's Financial Stability Report
The Reserve Bank of India (RBI)'s Financial Stability Report, released in June, maintained a favorable outlook for inflation.It expects food prices to remain stable due to good crop production. The risk of imported inflation remains low as a slowdown in global demand is likely to keep crude oil and commodity prices in check. However, recent Middle East tensions have added some uncertainty to this picture.
Stability assurance
Current price stability is not temporary: Government note
The RBI believes inflation will remain aligned with its medium-term target of 4%, possibly falling slightly below it in the coming months. "This easing trend gives confidence that the current price stability is not temporary, but part of a broader pattern of economic stability," the note said. Key sectors like manufacturing, services, and infrastructure are progressing steadily with investment support and policy focus despite external risks.