Record FDI inflows in FY25: India attracts $92 billion in foreign direct investment, led by manufacturing, renewable energy, and technology, reinforcing global investor confidence.

Tourism rebound boosts services GDP: International arrivals surge 28% year-on-year, driven by G20 exposure, new e-visa policies, and infrastructure upgrades.

Green energy expansion accelerates: Renewable capacity crosses 200 GW, with solar accounting for over half, aligning with net-zero 2070 targets.

Digital payments reached an all-time high: UPI transactions surpassed 15 billion in July 2025, reflecting the rapid adoption of fintech and growth in financial inclusion.

Agricultural exports hit record levels: FY25 agri-exports touch $65 billion, aided by strong demand for rice, spices, and marine products

India’s GDP Growth Tops Global Charts: 6.5% FY growth; poised to become 4th largest economy by 2027.

Generative AI Investment Boom: $524M in 2025 YTD, with global-scale Indian startups leading the charge.

Swadeshi 2.0 - India as a Maker: Domestic manufacturing surges in defence, electronics, and renewable sectors.

Deep-Tech Defence & Space Startup Surge: 2,300+ startups under iDEX driving tech self-reliance.

Indian Giants in Forbes Global 2000: 70 companies with multi-trillion-dollar global impact.

Growth Performance: India’s economy expanded 6.5% in FY 2024-25, marking the fastest growth among all major economies. The final quarter clocked an impressive 7.4% GDP rise, surpassing analyst expectations and reinforcing India’s resilience amid global headwinds. Inflation eased to 2.82% in May 2025, its lowest in six years, creating a more stable macroeconomic backdrop.

Drivers: Private consumption saw a sustained rebound, while gross fixed capital formation surged 9.4% in Q4, supported by government infrastructure push and corporate capex. The manufacturing and services sectors both posted strong growth, aided by favourable monsoon patterns and rising exports. Policy continuity also played a crucial role in sustaining investor confidence.

Global Positioning: India is on track to become the 4th largest economy globally by 2027, overtaking Japan. Analysts cite demographic strength, digital transformation, and supply-chain diversification as long-term growth enablers. Multilateral agencies have also raised India’s growth forecasts for the next two years.

Record Funding: Indian generative AI startups raised $524 million in the first seven months of 2025, the highest in five years and a clear sign of surging global investor interest. This marks a 70% year-on-year jump in AI-focused funding, outpacing the growth seen in other emerging markets. The deal pipeline suggests the momentum could carry through to year-end.

Notable Rounds: Flagship deals include GigaML raising $40 million at a $350 million valuation, and Atomicwork securing $25 million at a $120 million valuation. These companies are developing proprietary AI models and SaaS solutions with applications spanning finance, healthcare, and logistics. Early customer traction is already visible in overseas markets.

Strategic Implication: This wave of funding positions India as a potential leader in global AI innovation. Domestic startups are increasingly targeting enterprise-grade solutions, competing with established Western and Chinese players. Experts believe the AI sector could become a $15–20 billion market for India by 2030.

Shift in Role: The “Swadeshi 2.0” narrative is transforming India from being a consumption-heavy market to an emerging global manufacturing hub. Strategic government initiatives like PLI (Production Linked Incentive) schemes and trade diversification policies are playing a pivotal role in this shift. This transition is strengthening India’s competitiveness in export-led sectors.

Key Sectors: Defence, electronics, semiconductors, and renewable energy are leading the charge, with several global OEMs expanding local production capacities. The auto sector has also seen rising EV manufacturing, aimed at both domestic and international markets. These moves are designed to reduce dependency on imports and improve the trade balance.

Impact: Enhanced manufacturing capacity improves India’s standing in global supply chains, especially as companies look to “China+1” strategies. Analysts note that this is also improving job creation in tier-2 and tier-3 cities. Over the long term, it could boost India’s share in global merchandise exports from 2% to over 5%.

Startup Ecosystem: Over 2,300 startups in the defence and space sectors are now active under the Ministry of Defence’s iDEX initiative. These startups are innovating across AI-based surveillance, drone warfare systems, satellite manufacturing, and quantum technologies. The number of registered startups in this segment has doubled in the last three years.

Innovation Leadership: QNu Labs, a Bengaluru-based quantum cryptography company, has achieved a global first in long-distance Quantum Key Distribution (QKD). This breakthrough could make India a key supplier in ultra-secure communications technology, a critical tool for both defence and banking. Other startups are building indigenous propulsion systems and deep-space exploration technologies.

Strategic Significance: Reduced dependency on imported defence tech strengthens national security and aligns with the ‘Atmanirbhar Bharat’ vision. India’s potential to export defence technologies to friendly nations could open a multi-billion-dollar export market. This also fosters high-value employment in advanced R&D sectors.

Global Recognition: This year, 70 Indian companies made it to the Forbes Global 2000 list, reflecting a growing corporate footprint on the world stage. These firms span sectors including banking, IT, energy, and consumer goods, showcasing India’s economic diversity. The list is based on sales, profits, assets, and market value.

Scale: Collectively, these companies posted US$1.3 trillion in sales, US$126 billion in profits, and US$2.3 trillion in market capitalization. Many have also expanded their operational footprints abroad, tapping into new consumer markets and strategic acquisitions.

Implication: The sustained presence of Indian firms on such a prestigious list underscores their financial strength, governance standards, and global ambitions. Analysts suggest that as India’s domestic economy grows, more mid-sized firms could break into the global rankings.