India’s economy has continued to demonstrate resilience, posting stronger than expected growth while navigating global trade tensions and investing heavily in long-term infrastructure development.
According to recent economic data, India’s real Gross Domestic Product (GDP) expanded by 7.6% to 7.7% year on year, surpassing earlier government projections. The strong performance reflects sustained economic activity across key sectors, particularly manufacturing and industrial production.
To improve the accuracy of its economic measurements, the Indian government has updated its national accounting system by changing the GDP base year from 2011-12 to 2022-23 . The rebasing provides broader economic coverage and revises the country’s debt-to-GDP ratio to 84.5%, offering policymakers a more comprehensive picture of the economy.
Industrial production also recorded steady growth, with the Index of Industrial Production (IIP) rising by 4.1% compared to the previous year. Manufacturing remained the primary driver, growing by 4.3%, supported by increased output in core industries, including basic metals.
Despite the positive momentum, analysts project India’s GDP growth for the remainder of the 2026 fiscal year to moderate to between 6.3% and 6.8%. Rising global energy prices, depreciation of the Indian rupee against the U.S. dollar, and shipping disruptions in the Middle East are expected to weigh on economic activity.
Meanwhile, India has secured a relatively favorable position in ongoing trade developments with the United States. The Office of the U.S. Trade Representative (USTR) imposed an additional 10% tariff on selected Indian imports under Section 301 measures linked to global forced-labor compliance standards.
India, however, avoided the steeper 12.5% tariff imposed on several competing economies, including China, Vietnam, and Brazil. Approximately 45% of India’s exports to the United States, including smartphones and generic pharmaceuticals, remain exempt from the new duties, while sectors such as textiles, garments, apparel, and leather products will face the additional 10% tariff.
Alongside its economic performance, India continues to expand its infrastructure through the PM Gati Shakti National Master Plan, a ₹100 lakh crore initiative designed to modernize the country’s transport and logistics network.
The program integrates 16 government ministries through a Geographic Information System (GIS)-based digital platform aimed at reducing logistics costs from 14% to 8% of GDP. So far, the Network Planning Group (NPG) has approved 352 major infrastructure projects worth ₹16.10 lakh crore (approximately US$178.89 billion) to improve coordination and eliminate construction delays.
Among the latest projects is the Ballari–Guntakal railway multi-tracking corridor, expected to significantly boost freight movement and strengthen India’s transport network. Inland waterways have also expanded rapidly, with cargo movement increasing to 218 million metric tonnes (MMT), further supporting the country’s growing logistics sector.
Economists say these combined efforts in economic reform, infrastructure development, and trade management position India to sustain long-term growth despite ongoing global economic uncertainties.
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