India (Macro-economy)

• Over the last 5 years India’s GDP growth rate has remained stable above 6.4%, India being the fastest growing economy in the world. This growth is led by public investment in infrastructure and rising household investments.

• India is the 5th largest economy currently with GDP of USD 3.5 trillion, but expected to be the 3rd largest economy by 2030.

• India’s Fiscal Deficit is also controlled at 4.8% in 2024-25 revised estimates, with a target of 4.4% in 2025-26, as outlined in the medium-term fiscal policy. The Fiscal Responsibility and Budget Management (FRBM) Act, 2003, serves as the legislative framework guiding India's fiscal discipline.

• India has witnessed a continuous downward trend in inflation from 5.13% in 2021 to 4.91% in 2024. RBI projects inflation to be around 4.2% in 2025. This downward trend is due to stable food prices and effective monetary policies. In February 2025, retail inflation dropped to 3.61%, a seven-month low, driven by a sharp decline in food prices, particularly vegetables.

• Industrial sector grew at 8.6%, YoY driven by manufacturing and construction sub-sectors

• Gross fixed capital formation increased by 9.0% YoY

• FDI: Total FDI inflows is at USD 990.97 billion (April 2000 – March 2024) and FDI equity inflows is at USD 678.86 billion (April 2000-March 2024). Gross FDI Inflows increased from USD 47.2 Bn in first eight months of 2024-25 to USD 55.6 bn for the same period for 2025-26, with an YoY growth of 17.9%

• Demographic dividend:

• The population of India is expected to rise from 121.1 Cr to 152.2 Cr during 2011-36 an increase of 25.7% in 25 years.

• India has its largest ever adolescent and youth population, with more than 50% of its population below the age of 25 and more than 65% below the age of 35. It will continue to have one of the youngest populations in the world till 2030.

• India has the third-largest group of scientists and technicians in the world

• By 2030, it is estimated that around 42% of India’s population would be urbanised from 31% in 2011.

• Capacity addition in solar and wind power increased by 15.8% YoY in December 2024.

• Euro 4.5 billion fund has been allocated for Self-Reliant India Fund to provide equity funding for MSMEs.

• The overall growth and fundamentals of Indian economy provide grounds for stable climate for investment and trade, providing a rate of return higher than in Europe and most other economies in the world, and stable supply chains for trade. The policy changes also allow for further development of the Indian economy making it a stable supply chain partner for Europe and France and security of investments.