Economic Overview and Current Performance

India has solidified its position as the world's fastest-growing major economy, demonstrating remarkable resilience despite global uncertainties. The economy recorded a GDP growth of 6.5% in FY 2024-25, maintaining its status as a key driver of global economic growth. This performance, while representing a four-year low compared to previous years, positions India significantly ahead of other major economies, with projections showing continued growth between 6.3% to 6.8% for FY 2025-26. With a nominal GDP of approximately ₹330.68 lakh crore ($4.187 trillion) in FY 2024-25, India remains the world's fourth-largest economy and is projected to become the third-largest by 2030 with an estimated GDP of $7.3 trillion. The economy's trajectory reflects a transition from dependency to becoming a self-reliant, globally competitive powerhouse.

Sectoral Structure and Employment :- Service Sector Dominance India's economy has undergone a remarkable structural transformation, with the services sector contributing approximately 55-60% to GDP, making it the largest and fastest-growing component. This sector encompasses information technology, financial services, healthcare, education, and telecommunications. The IT services industry, led by companies like TCS, Infosys, and Wipro, has positioned India as a global leader in technology outsourcing. The services sector's contribution to Gross Value Added (GVA) increased from 50.6% in FY14 to 55.3% in FY25, with an average growth rate of 8.3% between FY23 and FY25. This transformation represents India's unique development path, transitioning directly from agriculture to services, largely bypassing the typical industrial phase.

Manufacturing and Industrial Sector The secondary sector, encompassing manufacturing, construction, and industries, contributes approximately 25-30% to India's GDP. Manufacturing accounts for a significant portion at around 15% of GDP, though this remains below the government's target of increasing it to 25% through initiatives like Make in India. Key manufacturing industries include automobiles, chemicals, textiles, pharmaceuticals, and steel production. The eight core sectors—electricity, steel, refinery products, crude oil, coal, cement, natural gas, and fertilizers—have a combined weight of over 40% in the Index of Industrial Production.

Agricultural Sector Despite employing approximately 40-45% of the workforce, agriculture contributes only 16-17% to GDP. This disparity highlights the sector's productivity challenges and the need for modernization. The primary sector, which includes agriculture, forestry, fishing, and mining, contributed 19.7% to nominal GDP in FY 2024-25. Agriculture remains crucial for food security and rural livelihoods, with India ranking among the top producers of rice, wheat, pulses, and various agricultural commodities. However, the sector faces challenges including fragmented land holdings, dependence on monsoons, and limited access to modern technology.