India is on track to be one of the fastest growing major economies in the world this year, underpinned by prudent macroeconomic policies.

In July 2024, the International Monetary Fund (IMF) raised its forecast for India's gross domestic product (GDP) growth in 2024–2025 from 6.8% to 7%. This is a 20 basis point increase from the April 2024 estimate. The IMF cited improving private consumption, especially in rural India, as the reason for the increase. The IMF also kept its estimate for India's GDP growth in 2025–2026 at 6.5%.

 

 

 

  1. Last major global economy now under transition from a low-income GDP per capita to a middle- income GDP per capita.
  2. Most exciting growth story in Asia driven by superior demographics, rising middle class, low household debt and under penetration.
  3. Rising wages, sustained growth and political stability have catalysed the evolution of India consumption patterns.
  4. Families are spending more on health, education, leisure, technology, and lifestyle products.
  5. Increasing income and development of the middle-income segment are likely to drive future consumption growth.
  6. Growth in India is projected to remain strong at 6.5 per cent in both 2024 and 2025: IMF.
  7. From an external perspective, the lack of growth in developed economies coupled with quantitative easing by the central banks over the past decade has created a situation of excess capital generation in these countries.
  8. This excess capital found its way into emerging high growth markets wherein India stands next only to China as a preferred investment destination.
  9. India’s large economic potential and favourable investment climate make it a necessary part of the bucket list of global alternative investment funds.
  10. The launch of India’s tech stack, including Aadhaar & UPI have been transformational and highly inclusive.
  11. Innovation has now penetrated to T2 & T3 India fostering a new breed of entrepreneur who is challenging the status quo.

 

 

 

India’s startup growth was triggered by government digitalisation at scale, starting in 2010, which involved, among other things, issuing of unique digital identification numbers to citizens. This opened up possibilities to bring financial services to people who had previously been unbanked.

Venture capital investment kicked up sharply in the period 2013-14, with Startup funding rounds peaking at 1,504 in 2022 from 79 in 2013. Deal value climbed in tandem to$25.77bn in 2021 from $423m in 2013.