Has India's Economy Tripled in Size Over the Last Decade?

New Delhi, July 6 (NationPress) The remarkable economic journey of India continues to capture global interest, underpinned by robust fundamentals and steady performance. In the last ten years, India's economic scale has increased from Rs 106.57 lakh crore to Rs 331.03 lakh crore in 2024–25, reflecting a commendable GDP growth rate of 6.5 percent for the year, as per the official data disclosed on Sunday.

The Reserve Bank of India anticipates this growth trajectory to persist into 2025–26. Similar forecasts suggest a positive outlook, with the United Nations projecting growth at 6.3 percent for this year and 6.4 percent for the next, while the Confederation of Indian Industry estimates a slightly higher range of 6.4 to 6.7 percent.

This enduring growth is driven by strong domestic consumption. Increased rural spending, urban expenditure, and rising private investments characterize the economy's vibrant landscape. Businesses are scaling up operations, operating at near-maximum output levels, while public investment, particularly in infrastructure, remains robust. Favorable borrowing conditions are enabling both businesses and consumers to make forward-looking choices, as stated.

In contrast, global economic conditions appear fragile. The United Nations has characterized the world economy as being in a “precarious moment”, highlighting trade disputes, policy uncertainties, and diminishing cross-border investments. Despite these challenges, India stands out as a beacon of hope, with global institutions and industry organizations expressing confidence in its growth trajectory.

India's strong macroeconomic fundamentals have also contributed to a notable decline in inflation, providing relief to households and businesses alike. In May 2025, the annual inflation rate based on the Consumer Price Index (CPI) was recorded at 2.82 percent, the lowest since February 2019, reflecting a decrease of 34 basis points from the previous month.

Food prices, which significantly influence overall inflation, have also stabilized. The Consumer Food Price Index (CFPI) indicated an inflation rate of merely 0.99 percent in May 2025, marking the lowest food inflation since October 2021. Both rural and urban food inflation rates were nearly identical at 0.95 percent and 0.96 percent, respectively. Compared to April 2025, food inflation fell by 79 basis points, indicating a clear downward trend in essential commodities such as vegetables and grains.

The Reserve Bank projects that inflation will remain aligned with its medium-term goal of 4 percent, and it may even dip slightly below that threshold in the upcoming months.

India's capital markets are thriving, showcasing a visible boost in confidence. They have emerged as a vital engine for economic growth by transforming household savings into investments. Despite global tensions and domestic uncertainties, the stock market exhibited strong performance through December 2024, outperforming many other emerging economies. This trend reflects how both local and global investors trust India's growth narrative, as noted.