1st September 2025 (15 Topics)
1
Sep
Economic Resilience
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Context:
India’s Q1 FY 2025-26 GDP growth of 7.8% alongside S&P’s sovereign rating upgrade highlights the nation’s resilience and reform-driven momentum.
Growth and Stability
- Broad-Based Growth: Real GDP grew 7.8% in Q1 FY 2025-26, with manufacturing (7.7%), construction (7.6%), and services (9.3%) contributing significantly.
- Global Standing: India is now the world’s fourth-largest economy and fastest-growing major one, contributing over 15% to global incremental growth.
- Market Recognition: S&P Global upgraded India’s sovereign rating after 18 years, citing robust growth, fiscal consolidation, and monetary credibility.
Poverty Reduction and Energy Security
- Poverty Alleviation: Between 2013-14 and 2022-23, nearly 24.82 crore people exited multidimensional poverty through targeted welfare and digital delivery systems.
- Energy Expansion: India is the third-largest energy consumer, with refining capacity of 5.2 million barrels/day and ambitious targets for 2030.
- Energy Transition: Ethanol blending rose from 1.5% in 2014 to 20% in 2025, saving ?1.25 lakh crore in forex and directly benefiting farmers.
Technology and Future Trajectory
- Industrial Transformation: Semiconductor and electronics investments under PLI schemes are building resilient, trusted supply chains with Japanese cooperation.
- Digital Momentum: India leads globally in real-time payments, with UPI driving productivity, formalisation, and innovation-led exports.
- Long-Term Outlook: Projections suggest India could become the world’s second-largest economy in PPP terms by 2038 with GDP above $34 trillion.
“India’s economic resilience is shaped by a synergy of reforms, energy security, and digital transformation. Discuss with reference to recent growth trends and future challenges.” (250 words)
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