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PIB Summaries 07 July 2025

  1. India’s Economic Surge
  2. India’s Story on Bridging Inequality


India’s Economic Performance (2024–25): A Bird-view

  • Fastest growing major economy: Real GDP grew 6.5%, expected to continue into 2025–26.
  • Global context: Growth amid global slowdown and trade uncertainties.
  • Macro stability: Supported by robust domestic demand, easing inflation, capital market activity, and export growth.

Relevance : GS 3(Indian Economy , Growth)

Robust GDP Growth

  • 6.5% real GDP growth in 2024–25; nominal GDP rose 9.9%.
  • Indias GDP tripled in a decade: ₹106.57 lakh crore (2014–15) → ₹331.03 lakh crore (2024–25).
  • Growth driven by:
    • Rural and urban consumption revival
    • Private investment surge
    • High public infrastructure spending
  • Global projections: UN (6.3–6.4%), CII (6.4–6.7%) for 2025–26.

Inflation Under Control

  • CPI inflation dropped to 2.82% in May 2025 — lowest since Feb 2019.
  • Food inflation fell to 0.99%, with urban and rural rates nearly identical.
  • RBI outlook: Inflation likely to stay below 4% target due to good crop output and soft global commodity prices.

Market Confidence at Record Levels

  • Retail investors: Jumped from 4.9 cr (2019) to 13.2 cr (2024).
  • Booming IPO market:
    • 259 IPOs between Apr–Dec 2024 (↑32.1%)
    • Capital raised: 1.54 lakh crore (↑190%)
    • India’s share in global IPOs: 30% (highest worldwide)
  • Stock markets outperformed other emerging economies, indicating investor trust.

Strengthening External Sector

Foreign Direct Investment

  • FDI inflows: USD 81.04 billion in FY 2024–25 (↑14% YoY).
  • Top sectors:
    • Services (19%)
    • Software & hardware (16%)
    • Trading (8%)
  • Manufacturing FDI up by 18%, services FDI up 40.77%.

Foreign Exchange Reserves

  • Reserves at USD 697.9 billion (June 2025) — cover over 11 months of imports.
  • External debt at a healthy 19.1% of GDP.

Current Account Balance

  • Q4 surplus: USD 13.5 billion (1.3% of GDP).
  • Full-year CAD contained at 0.6% of GDP, aided by strong services exports and remittances.

Manufacturing and Export Momentum

  • Total exports at all-time high: USD 824.9 billion (↑6.01% YoY).
    • Services exports: USD 387.5 billion (↑13.6%)
    • Non-petroleum merchandise exports: USD 374.1 billion (↑6.0%)
  • Strong gains in:
    • IT, consulting, finance
    • Machinery, chemicals, electronics, defence
  • Manufacturing GVA: ₹15.6 lakh crore (2013–14) → ₹27.5 lakh crore (2023–24)
    • Sector’s share stable at ~17.3%

Conclusion: India’s Balanced Growth Model

  • High growth + Low inflation = rare macroeconomic stability.
  • Investor confidence at all-time high.
  • Resilient external sector adds global trust.
  • Despite external risks, India is positioned as a pillar of global economic growth with long-term sustainability and inclusive potential.


India: Among World’s Most Equal Societies

  • India ranks 4th globally in income equality (Gini Index: 25.5), behind Slovak Republic (24.1), Slovenia (24.3), Belarus (24.4).
  • Extreme poverty fell to 2.3% in 2022–23 (from 16.2% in 2011–12).
  • 171 million Indians exited extreme poverty between 2011–2023.

Relevance : GS 2(Governance, Welfare)

 

Understanding Gini Index

  • Measures income inequality on a scale of 0 (perfect equality) to 100 (absolute inequality).
  • Indias 2022 Gini: 25.5, improved from 28.8 in 2011—shows consistent equity gains.
  • Graphically derived from the Lorenz Curve, measuring deviation from perfect equality.

 

Global Comparison

  • India’s inequality level is lower than China (35.7) and the USA (41.8).
  • India scores better than all G7 & G20 countries (including UK, Germany, France, Canada, Japan).
  • Part of the elite group of ~30 countries in the “moderately low inequality” category (Gini 25–30).
  •  

Poverty Reduction = Equality Rise

  • Share of population under $2.15/day fell from 16.2% (2011) to 2.3% (2022–23).
  • Under updated $3/day poverty line: India’s poverty rate stands at 5.3% (2022–23).
  • Urban & rural poverty both sharply declined—reflecting broad-based welfare impact.

Key Government Interventions Driving Equality

PM Jan Dhan Yojana

  • 55.69 crore accounts (as of June 25, 2025); drives financial inclusion and benefit access.

Aadhaar Digital Identity

  • 142 crore+ Aadhaar IDs; ensures authentic targeting of welfare and subsidies.

Direct Benefit Transfer (DBT)

  • 3.48 lakh crore in savings by March 2023; plugs leakages, speeds delivery.

Ayushman Bharat (PM-JAY)

  • 41.34 crore Ayushman cards, 32,000+ empanelled hospitals.
  • Special schemes for senior citizens (Ayushman Vay Vandana).
  • 79 crore+ digital health IDs via Ayushman Bharat Digital Mission.

Stand-Up India

  • ₹62,807 crore disbursed to 2.75 lakh SC/ST & women entrepreneurs.
  • Promotes inclusive entrepreneurship and wealth generation.

PMGKAY (Free Food Scheme)

  • 80.67 crore beneficiaries (as of Dec 2024); ensured food security during and after COVID-19.

Vishwakarma Yojana

  • 29.95 lakh artisan registrations (as of July 2025); supports traditional livelihoods through credit, training, tools.

What Sets India Apart

  • Simultaneous pursuit of economic growth and social justice.
  • Combines digital infrastructure, targeted welfare, and inclusive credit systems.
  • Policies reach the last mile while also empowering self-reliance.

Conclusion: A Model for Inclusive Growth

  • India’s Gini score is more than a statistic—it’s a reflection of policy-driven transformation.
  • Equality and development are not opposites but mutually reinforcing.
  • India is now a global benchmark for combining economic scale with social fairness.

July 2025
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