Indian economy grew by 6.2 in real terms

Indian economy grew by 6.2% in real terms during the October-December quarter of the current financial year 2024-25, according to official data released by the Ministry of Statistics and Programme Implementation on 28 February 2025.

♦ The October-December growth was higher than the 5.6% recorded in the July-September quarter. However, it fell short of the Reserve Bank of India’s (RBI) forecast of 6.8%.

♦ The RBI has projected real GDP growth for 2024-25 at 6.6%, with the economy expected to expand by 7.2% in the January-March quarter, according to its December monetary policy review.
 

Super Billionaires

♦ The Wall Street Journal published the list of 24 individuals dubbed "super billionaires" on 27 February 2025.

♦ These individuals, each possessing a net worth of $50 billion or more, are not just accumulating wealth but actively shaping industries, influencing global markets, and driving innovation.

♦ Adani Group Chairman Gautam Adani and Reliance Industries’ Mukesh Ambani are among the world’s super billionaires. Ambani, the chairman of Reliance Industries—India’s most valuable company—has a fortune of $84.9 billion, while Adani’s net worth stands at $65.4 billion.

Full List Of Superbillionaires:

Indias annual wind power capacity

♦ According to a Crisil report, India’s annual wind power capacity addition is projected to more than double to an average of 7.1 GigaWatts (GW) over the next two financial years, compared with 3.4 GW in fiscal year 2023-24.

♦ This growth, driven by government measures to accelerate the sector, is expected to increase the country’s total installed wind capacity to approximately 63 GW by 2026-27.

♦ Capacity additions in financial years 2023-24 and 2024-25 remained tepid, ranging between 6-7 GW, due to fewer successful auctions of wind capacities—5.9 GW in FY21-23 and 5.2 GW in FY23-25.

♦ The government’s push for hybrid renewable projects—combining solar, wind, and/or storage—along with a more favorable cost structure for wind projects, is expected to drive capacity growth, the report stated.

♦ Wind power is expected to account for 30–50% of these hybrid projects, as it generates electricity during peak demand periods, unlike solar power, which is mostly active during daytime hours.

Indian Technology Industry

♦ The Indian technology industry is projected to achieve $300 billion in revenue by the financial year 2026-27, according to a report by Nasscom.

♦ For the current fiscal year (2025-26), the sector is expected to add approximately 126,000 net new employees, bringing the total workforce to 5.8 million.

♦ Segments such as engineering research and development (ER&D) and global capability centers (GCCs) have been key growth drivers for India’s technology sector.

♦ The Annual Strategic Review 2025 by Nasscom highlighted that the industry grew by 5.1% during FY25, adding $13.8 billion in incremental revenue.

♦ This increase has taken the sector’s total revenue, including hardware, to over $282.6 billion.

Asia-Pacific Economy

♦ Moody's Analytics said, India's growth will slow to 6.4 percent in 2025, from 6.6 percent in 2024, as new US tariffs and softening global demand weigh on exports.

♦ In its report titled 'Asia-Pacific Outlook: Chaos Ahead', Moody's Analytics said growth across the Asia-Pacific economy will slow in 2025 as trade tensions, policy shifts, and uneven recoveries knock the region's fortunes.

♦ It projected Chinese GDP growth slowing to 4.2 percent in 2025 and 3.9 percent in 2026 from 5 percent in 2024. 

State Bank of India (SBI)

♦ The State Bank of India (SBI) has estimated GDP growth during the current financial year (2024-25) to be 6.3 percent in its research report.

♦ The report said that leveraging 36 high-frequency indicators, the estimated GDP growth for the third quarter of the current financial year should be between 6.2 percent and 6.3 percent.

♦ According to the National Statistics Office (NSO), the real and nominal GDP growth rates for 2024-25 are projected at 6.4 pecent and 9.7 percent, respectively.

Tech-Driven Economy

♦ Bain & Company and Nasscom released the 'India @2047: Transforming India into a Tech-Driven Economy' report on 20 February 2025.

♦ According to this, India is set to transform into a high-income country with a projected GDP of $23–$35 trillion by 2047, driven by sustained annual growth of 8-10 percent.

Key Highlights:

♦ By 2047, the services sector is expected to contribute 60% of India’s GDP, while manufacturing will account for 32%, both playing a crucial role in economic expansion.

♦ Electronics, energy, chemicals, automotive, and services sectors would act as strategic growth levers due to alignment with global trends and scalability.

♦ Advances in AI-driven chip design, touchless manufacturing, and backward integration into component manufacturing and design could enhance cost competitiveness and innovation, driving the sector’s export share from 24 percent to 45 percent-50 percent by 2047 and its GDP contribution from 3 percent to 8 percent-10 percent.

♦ India’s share of renewables in overall energy generation has the potential to rise from 24 percent in 2023 to 70 percent in 2047 backed by modernising energy infrastructure, and scaled investments in green energy.

♦ India is also likely to transition from a net energy importer to a net exporter.

♦ Auto-components  exports sector is likely to reach $200–$250 billion (by 2047), driven by near-term share capture in ICE market and longer-term shift to EVs.

Wholesale Price Index (WPI)

♦ India’s annual Wholesale Price Index (WPI) inflation eased to 2.31% in January 2025 from 2.37% in December 2024, according to data released by the Commerce and Industry Ministry on 14 February 2025.

♦ Month-over-month, the WPI declined by 0.45% in January, driven by lower food prices.

♦ The index for primary articles fell by 2.01% as food article prices dropped by 3.62%. However, prices of crude petroleum and natural gas (6.34%), non-food articles (0.66%), and minerals (0.22%) increased.

♦ Inflation in the fuel and power category rose by 0.47%, though coal prices remained unchanged from December 2024.

♦ Manufactured products, which account for 64.23% of the index, saw a marginal increase of 0.14%. Out of 22 manufacturing groups, 15 recorded price increases, five saw declines, and two remained unchanged. 

♦ The WPI Food Index inflation dropped from 8.89% in December 2024 to 7.47% in January 2025.

Reserve Bank of India (RBI)

♦ The Reserve Bank of India (RBI) has announced that it will inject Rs 2,50,000 crore through its Variable Rate Repo (VRR) auction to enhance liquidity in the banking system.

♦ The RBI also said it will be conducting daily VRR auctions on all working days in Mumbai with reversal taking place on the next working day, until further notice.

♦ India’s banking system liquidity deficit quadrupled in less than a week to around 2 trillion rupees as on February 10, with traders citing tax outflows and aggressive dollar sales by the central bank as reasons for the jump.

Securities and Exchange Board of India (SEBI)

♦ The Securities and Exchange Board of India (SEBI) introduced a new digital platform, MITRA, to assist investors in tracking and reclaiming inactive or unclaimed mutual fund folios on 12 February 2025.

♦ The objective of the platform, Mutual Fund Investment Tracing and Retrieval Assistant, is to encourage investors to search for forgotten MF investments and update KYC as per the current norms.

♦ Mutual Fund Investment Tracing and Retrieval Assistant (MITRA) will help with investments that may have been overlooked, lost, or left unclaimed due to outdated know your customer (KYC) details or the demise of the original investor.

Indias net direct tax collection

♦ India’s net direct tax collection, comprising corporate tax and personal income tax, increased by 14.69% to cross Rs.17.78 lakh crore as of February 10 in the current financial year (2024-25), compared to Rs.15.51 lakh crore in the same period of 2023-24, according to data released by the Central Board of Direct Taxes (CBDT) on 11 February 2025. 

♦ The gross direct tax revenue surged by 19.06% to exceed Rs.21.88 lakh crore, up from Rs.18.38 lakh crore in the corresponding period of the previous year (2023-24).

♦ Revenue from net non-corporate taxes, primarily personal income tax, grew by 21% year-on-year to Rs.9.48 lakh crore during this period.

♦ Meanwhile, net corporate tax collection rose by over 6% to more than Rs.7.78 lakh crore between April 1, 2024, and February 10, 2025.

Reserve Bank of India (RBI)

♦ Reserve Bank of India (RBI) Governor Sanjay Malhotra confirmed that the Monetary Policy Committee (MPC) had unanimously decided to reduce the policy rate by 25 basis points (bps), from 6.50% to 6.25% on 7 February 2025.

♦ This was the first reduction since May 2020 and the first revision after two-and-a-half years. The move is expected to reduce borrowing costs, potentially improving credit availability and boosting demand across sectors.

RBI MPC Meeting February 2025 Key Highlights:

♦ GDP expected to grow at 6.7% in 2025-26, driven by consumption & investment.

♦ Inflation projected at 4.2% for 2025-26, barring major shocks.

♦ Global risks (geopolitics, trade policy, financial volatility) remain key concerns.

Other Adjustments: Standing Deposit Facility (SDF) rate: 6.00%

Marginal Standing Facility (MSF) rate & Bank Rate: 6.50%

India’s Economic Growth (2024-25):

GDP Growth Estimate: 6.4% YoY, driven by private consumption recovery; (Quarterly estimates: Q1 - 6.7%, Q2 - 7.0%, Q3 & Q4 - 6.5% each)

Headline Inflation: Declined from 6.2% in Oct 2024 to lower levels in Nov-Dec 2024 due to falling food inflation

Projections for 2024-25:

CPI Inflation: 4.8% (Q4: 4.4%);

Projections for 2025-26:

CPI Inflation: 4.2%

Goods and Services Tax (GST) collections

♦ Goods and Services Tax (GST) collections for the month of January 2025 touched Rs.1.96 lakh crore, an increase of 12.3% year-on-year basis. For the previous month, India's GST collections rose 7.3% to Rs.1.77 lakh crore in December compared to the previous year (2024).

♦ Central GST collections stood at Rs.36,100 crore while states was at Rs.44,900 crore. Additionally, for this month (January 2025), integrated GST collections remained at Rs.1.01 lakh crore. Furthermore, GST cess collections was reported at Rs.13,400 crore.