India’s GDP Doubles in a Decade to $4.27 Trillion: IMF

India’s Gross Domestic Product (GDP) has grown significantly over the past 10 years, doubling from $2.1 trillion in 2015 to a projected $4.27 trillion by the end of 2025, according to the International Monetary Fund (IMF). This milestone underscores the country's steady economic expansion, driven by government spending, improved compliance, and robust private sector activity. 

Strong Growth and Stable Inflation 

The IMF estimates India’s real GDP growth for 2025 at 6.5%, indicating resilient economic performance. Retail inflation dropped to 3.61% in February, well within the Reserve Bank of India’s target range of 4–6%, helping preserve purchasing power and macroeconomic stability. 

Rising Per Capita Income, Fiscal Concerns Remain 

India’s per capita income, based on purchasing power parity, stands at $11,940, reflecting better living standards. However, the country's public debt remains high at 82.6% of GDP, signaling the need for prudent fiscal management despite ongoing developmental priorities. 

Capital Spending and Export Growth Fuel Expansion 

A key driver of India’s economic momentum has been the government’s aggressive capital expenditure. FY24 saw a 37.4% year-on-year rise, while the FY26 Union Budget increased the outlay by 10% to ₹11.21 lakh crore (US$131.4 billion). Additionally, total exports of goods and services climbed 5.5% year-on-year in FY25 to ₹69.8 lakh crore (US$820.9 billion), showcasing the strength of India’s external sector. 

Also Read: India Poised to Surpass Japan as Asia’s Second-Largest Life Insurance Market. 

Outlook for 2025: Growth Momentum Expected to Continue 

India’s Q3 FY25 GDP rose by 6.2%, with projections indicating a stronger 7.6% growth in Q4. Improved global positioning, increased investor confidence, and better infrastructure spending are expected to fuel further gains. With inflation easing and exports booming, India’s long-term economic prospects remain bright. 

Conclusion 

The doubling of India’s GDP over the past decade highlights the country’s strong economic fundamentals. As capital investment and exports continue to rise, India is well-positioned for sustained growth. However, managing inflation and public debt will be key to maintaining this momentum in the years to come. 

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