The year 2025 has been very important for the Indian economy and it will be remembered as a strong economic period in the years to come. According to the government’s annual review, fast economic growth, controlled inflation, strength in exports and improvement in the labor market were the main pillars of this year. According to the press note issued by the Press Information Bureau (PIB), the country’s gross domestic product (GDP) growth rate reached 8.2 percent in the second quarter of the financial year 2025-26, which is the highest level in the last six years.
signs of strong economy
Despite global trade challenges, strong domestic demand gave impetus to the economy, due to which growth was recorded at 7.8 percent in the first quarter of the financial year 2024-25 and 7.4 percent in the fourth quarter. Inflation remained at a low level throughout the year. The consumer price index was 4.26 percent in January 2025, which came down to about 3.55 percent by November, while the wholesale price index also remained under control, which led to stability in prices and gave the RBI the opportunity to soften the policy rates.
Better situation in the labor market
Improvement was also seen on the employment front, where the unemployment rate came down to 4.7 percent in November 2025, which was 5.2 percent in October and was considered to be the biggest decline after April 2025. The export sector also remained strong and merchandise exports increased to $38.13 billion in November, while the services sector recorded a sharp increase in global demand for Indian software and business services.
Government said- Gold Locks Movement
The government has described this balanced situation as a “Goldilocks movement” for the Indian economy, where strong demand and controlled inflation are in balance. In the same sequence, Gross Value Added (GVA), which measures domestic production, also increased to 8.1 percent in the second quarter of the financial year 2025-26, in which the industrial and service sectors had an important contribution.
Overall, India’s GDP has reached $4.18 trillion and the country has become the fourth largest economy in the world, which indicates that the Indian economy will continue to grow strongly in the future.
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