PIB Summary - 7th July 2025 | PIB (Press Information Bureau) Summary - UPSC PDF Download

India’s Economic Surge

Overview of India's Economic Performance (2024-25)

Fastest Growing Major Economy. India’s real GDP grew by 6.5% in 2024-25, and this growth is expected to continue into 2025-26.

Global Context. India achieved this growth despite a global slowdown and trade uncertainties.

Macro Stability. The economic stability was supported by strong domestic demand, easing inflation, active capital markets, and export growth.

Robust GDP Growth

• India experienced a 6.5% real GDP growth in 2024-25, with nominal GDP rising by 9.9%.
• The country’s GDP tripled in a decade, increasing from ₹106.57 lakh crore in 2014-15 to ₹331.03 lakh crore in 2024-25.
• This growth was driven by:
• Revival of rural and urban consumption
• Surge in private investment
• High public infrastructure spending
• Global projections for India’s growth in 2025-26 are 6.3-6.4% by the UN and 6.4-6.7% by the CII.

Inflation Under Control

• CPI inflation fell to 2.82% in May 2025, the lowest since February 2019.
• Food inflation dropped to 0.99%, with urban and rural rates being nearly the same.
• The Reserve Bank of India (RBI) anticipates inflation will remain below its 4% target due to good crop yields and lower global commodity prices.

Market Confidence at Record Levels

• Retail investors increased from 4.9 crore in 2019 to 13.2 crore in 2024.
• The IPO market is booming, with 259 IPOs between April and December 2024, a 32.1% increase, and ₹1.54 lakh crore raised, up 190%.
• India’s share in global IPOs reached 30%, the highest worldwide.
• Indian stock markets outperformed other emerging economies, reflecting strong investor trust.

Strengthening External Sector

Foreign Direct Investment (FDI)

• FDI inflows reached USD 81.04 billion in FY 2024-25, a 14% increase year-on-year.
• Top sectors for FDI include:
• Services (19%)
• Software and hardware (16%)
• Trading (8%)
• Manufacturing FDI increased by 18%, while services FDI rose by 40.77%.

Foreign Exchange Reserves

• Foreign exchange reserves stood at USD 697.9 billion in June 2025, covering over 11 months of imports.
• External debt remains at a healthy 19.1% of GDP.

Current Account Balance

• A surplus of USD 13.5 billion (1.3% of GDP) was recorded in the fourth quarter.
• The full-year current account deficit (CAD) was contained at 0.6% of GDP, supported by strong services exports and remittances.

Manufacturing and Export Momentum

• Total exports reached an all-time high of USD 824.9 billion, a 6.01% year-on-year increase.
• Services exports grew by 13.6%, reaching USD 387.5 billion.
• Non-petroleum merchandise exports increased by 6.0%, totaling USD 374.1 billion.
• Significant gains were observed in:
• IT, consulting, and finance
• Machinery, chemicals, electronics, and defense
• Manufacturing Gross Value Added (GVA) grew from ₹15.6 lakh crore in 2013-14 to ₹27.5 lakh crore in 2023-24.
• The sector’s share in the economy remained stable at approximately 17.3%.

Conclusion: India’s Balanced Growth Model

•  India is experiencing a unique period of high growth and low inflation, indicating rare macroeconomic stability. 
• Investor confidence is at an all-time high, and the resilient external sector enhances global trust in the Indian economy. 
•  Despite external risks, India is well-positioned as a pillar of global economic growth, with long-term sustainability and inclusive potential. 

India’s Story on Bridging Inequality

 India: A Leader in Income Equality 

• Global Ranking: India stands 4th in the world for income equality, with a Gini Index of 25.5. This places it behind the Slovak Republic (24.1), Slovenia (24.3), and Belarus (24.4).
• Extreme Poverty Reduction: Extreme poverty in India has dramatically decreased to 2.3% in 2022–23, down from 16.2% in 2011–12. This means that 171 million Indians have lifted themselves out of extreme poverty between 2011 and 2023.

Understanding the Gini Index

• The Gini Index measures income inequality, with 0 representing perfect equality and 100 indicating absolute inequality.
• India’s Gini Index improved from 28.8 in 2011 to 25.5 in 2022, showing progress in income equity.
• The index is derived from the Lorenz Curve, which measures the deviation from perfect income equality.

Global Comparison

• India’s Gini Index of 25.5 is lower than that of China (35.7) and the United States (41.8).
• India performs better than all G7 and G20 countries in terms of income inequality, including the UK, Germany, France, Canada, and Japan.
• India is part of a select group of around 30 countries classified as having “moderately low inequality,” with a Gini Index between 25 and 30.

Poverty Reduction and Rising Equality

• The share of the population living on less than $2.15 per day has plummeted from 16.2% in 2011 to 2.3% in 2022–23.
• Under the updated $3 per day poverty line, India’s poverty rate is estimated at 5.3% for 2022–23.
• Both urban and rural poverty have significantly decreased, reflecting the widespread impact of welfare initiatives.

Key Government Interventions Promoting Equality

1. PM Jan Dhan Yojana

• 55.69 crore bank accounts opened (as of June 25, 2025).
• Promotes financial inclusion and access to government benefits.

2. Aadhaar Digital Identity

• Over 142 crore Aadhaar IDs issued.
• Ensures accurate targeting of welfare programs and subsidies.

3. Direct Benefit Transfer (DBT)

• ₹3.48 lakh crore saved by March 2023.
• Reduces leakages and speeds up delivery of benefits.

4. Ayushman Bharat (PM-JAY)

• 41.34 crore Ayushman cards issued.
• Over 32,000 hospitals empanelled.
• Special schemes for senior citizens (e.g., Ayushman Vay Vandana).
• 79 crore+ digital health IDs created through the Ayushman Bharat Digital Mission.

5. Stand-Up India

• ₹62,807 crore disbursed to 2.75 lakh entrepreneurs from SC/ST communities and women.
• Encourages inclusive entrepreneurship and wealth creation.

6. Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)

• 80.67 crore beneficiaries (as of December 2024).
• Ensures food security during and post-COVID-19 pandemic.

7. Vishwakarma Yojana

• 29.95 lakh artisans registered (as of July 2025).
• Supports traditional livelihoods through credit, training, and tools.

What Makes India Unique

• India is successfully balancing economic growth with social justice.
• The country combines digital infrastructure, targeted welfare programs, and inclusive credit systems to promote equality.
• Government policies reach the most vulnerable populations while also fostering self-reliance and empowerment.

Conclusion: A Model for Inclusive Growth

•  India’s Gini score represents more than just a number; it reflects the transformative impact of well-designed policies. 
•  The country demonstrates that equality and development can go hand in hand, reinforcing each other. 
•  India is setting a global standard for integrating economic scale with social fairness.