India is expected to sustain a steady momentum in investments and savings, at approximately 33% and 32% of GDP respectively, reflecting the government’s efforts to create a conducive environment for businesses and investors, according to the PHD Chamber of Commerce and Industry (PHDCCI). “India ranks second among the top 10 economies in the past performance (2022-2024) and in the futuristic outlook (2025-2027) for savings and investments,” stated the industry body.
FDI Milestone: Cumulative Inflows Cross $1 Trillion
Marking a major milestone, India’s cumulative foreign direct investment (FDI) inflows reached USD 1 trillion between 2000 and 2024. Additionally, FDI inflows exceeded USD 40 billion in the first half of the 2024-25 financial year. Nearly 70% of the total FDI was accumulated over the past decade, spurred by proactive government policies and liberalized FDI norms.
Financial Prudence Keeps Debt-to-GDP in Check
India’s fiscal discipline remains evident as the country consistently holds the second rank in the Debt-to-GDP ratio among the top 10 economies, both in past performance (2022-2024) and the futuristic outlook (2025-2027). “India leads cumulatively across all lead indicators among the world’s top 10 major economies, highlighting prudent, transformative, and well-structured policies,” stated the PHDCCI study.
Growth Driven by Global Integration and Innovation
India’s rise as an economic powerhouse is attributed to its deeper integration into global supply chains, a thriving innovation ecosystem, and enhanced export competitiveness. The government’s fiscal consolidation efforts, such as rationalizing expenditures and revenues, further strengthen the country’s economic stability. “India has become an attractive and investment-friendly destination supported by the prudent efforts of the government to enhance ease of doing business,” said Dr. Ranjeet Mehta, CEO and Secretary General, PHDCCI. GDP
Growth Outpaces Global Peers
India’s GDP growth averaged around 8% between 2021 and 2024, demonstrating remarkable resilience despite geopolitical and economic challenges. Strong savings, robust investments, substantial forex reserves, and fiscal discipline are expected to keep India on a growth trajectory in the coming years. “India is projected to grow strong, outpacing other leading economies in the next many years,” remarked Dr. SP Sharma, Chief Economist and Deputy Secretary General, PHDCCI.
Inflation Under Control and Future Outlook
India’s inflation trajectory is forecasted to average 4.5% for the current financial year and 4% for 2025-26, reflecting the government’s efforts to maintain price stability.
Promising Sectors and Strategies for Growth
The PHDCCI identified five key sectors—agriculture and food processing, fintech, semiconductors, health and insurance, and renewable energy—as pivotal for driving India’s economic growth in the coming years.
To further accelerate growth, the industry body proposed a five-pronged strategy focusing on:
1. Increased capital expenditure
2. Enhanced ease of doing business
3. Reduction in the cost of doing business
4. Promotion of labor-intensive manufacturing
5. Greater integration into global value chains
These measures, combined with India’s current momentum, aim to propel the nation towards achieving its Viksit Bharat@2047 vision.
