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Jun 28, 2025
India's private consumption hits 20-Year high
India just hit the second-highest level in the past two decades for private consumption, with spending now making up 61.4% of the country's GDP in FY25—up from last year's 60.2%.
This jump is mostly thanks to people (especially in rural areas) buying more goods and services, as shown by a solid 7.2% rise in private final consumption expenditure.
TL;DR
Investments stayed strong too, with capital formation growing by 7.1%
Investments stayed strong too, with capital formation growing by 7.1%.
Meanwhile, exports picked up speed with a healthy 6.3% boost compared to last year, and imports actually dropped by 3.7%.
All together, these trends are giving India's economy some real forward momentum this year.