India is the world fifth largest economy by nominal GDP and third largest by PPP (Purchasing Power Parity). India GDP for FY 2025-26 is estimated at approximately USD 4.1 trillion at nominal exchange rates. The economy grew at approximately 7% in FY 2024-25, making India the fastest-growing major economy in the world.
GDP and Economic Indicators
| Indicator | Data (2025-26) |
|---|---|
| Nominal GDP | ~USD 4.1 trillion |
| GDP Growth Rate | ~6.5-7% |
| Per Capita Income (Nominal) | ~USD 2,800 |
| CPI Inflation Target | 4% (+/-2%) |
| Repo Rate (mid-2026) | 5.75% |
| Forex Reserves | ~USD 650 billion |
| FDI Inflows (FY25-26) | ~USD 80-85 billion |
| Defence Exports | ~Rs 21,000 crore |
| UPI Transactions (monthly) | 18+ billion |
Sectors of Indian Economy
Agriculture: Employs ~42% of workforce but contributes ~15-17% of GDP. Growth depends significantly on monsoon. India is world largest producer of milk, pulses and spices; 2nd largest producer of rice, wheat and sugarcane.
Industry: Contributes ~27% of GDP. Manufacturing sector is driven by government Make in India initiative targeting 25% GDP share. India is emerging as a global semiconductor and electronics manufacturing hub.
Services: Largest sector at ~55-58% of GDP. IT and software services are India biggest foreign exchange earner. India exports USD 320+ billion in services annually, making it the 7th largest services exporter globally.
Key Government Schemes
PM-KISAN: Rs 6,000/year income support to ~10.6 crore farmer families in three instalments. Launched 2019.
MGNREGS: 100 days of guaranteed wage employment per rural household per year. World largest employment guarantee programme.
PM Awas Yojana: Affordable housing for all. Urban 2.0 targets 1 crore units. Rural programme targets pucca houses for homeless rural poor.
Ayushman Bharat PM-JAY: World largest health insurance scheme. Rs 5 lakh annual health cover to 107 million vulnerable families (bottom 40% of population).
PM Mudra Yojana: Collateral-free loans up to Rs 10 lakh (Shishu up to Rs 50,000, Kishor up to Rs 5 lakh, Tarun Rs 5-10 lakh) for non-farm micro enterprises.
Banking System in India
India banking system is regulated by RBI. There are currently 12 Public Sector Banks, 21 Private Sector Banks, 45 Foreign Banks, 43 Regional Rural Banks, 1,500+ Urban Cooperative Banks and Small Finance Banks. The largest bank is State Bank of India (SBI) by assets, deposits and branches.
NBFC (Non-Banking Financial Companies) are regulated by RBI but do not have a banking licence. They can accept deposits (NBFC-D) or not (NBFC-ND). Examples: Bajaj Finance, Muthoot Finance, HDFC Ltd (now merged with HDFC Bank).