India’s economy has shown remarkable strength in recent years, with significant growth in per capita income, national income and foreign direct investment (FDI).
Business News: India’s per capita net national income is currently estimated at ₹1,92,774, while the total net national income has reached ₹271.44 lakh crore. These figures indicate stable growth in the country’s economy and improvement in income levels. There has also been strength on the savings front, which has strengthened the base of domestic resources for investment and capital formation.
Experts believe that the manufacturing sector is likely to grow in the coming times due to the trade agreements made by India with various countries and strong domestic demand. Along with this, consumption and exports are also expected to increase, which can provide further impetus to the overall economic growth.
10.2% increase in national income
India’s total net national income at current prices is projected to reach ₹271.44 lakh crore in 2024–25, from ₹246.25 lakh crore last year. This represents an annual growth of 10.2%, a result of steady expansion in economic activity and increased output. This growth is mainly due to strong performance in key sectors such as manufacturing, construction, mining, financial services and real estate. The increasing activities in these sectors have boosted employment, investment and production capacity.
There has been a steady increase in per capita income in the last few years. It was ₹1,59,557 in 2022–23, which increased to ₹1,76,465 in 2023–24 and has now reached ₹1,92,774 in 2024–25. This growth shows that the benefits of economic growth in India are gradually reaching the broader population. Along with this, per capita private final consumption expenditure (PFCE) has also increased, indicating improvement in consumer demand. PFCE increases to ₹1,27,627 in 2024–25, reflecting growth in household spending and consumption.
Savings and investment base strengthened
There has also been a significant increase in household savings in India. Gross savings reach ₹111.13 lakh crore in 2024–25. In this, the contribution of domestic sector was 62.1% and contribution of non-financial companies was 28.9%. High savings rates strengthen the country’s investment base and support capital formation in infrastructure, industry and technology sectors. A strong domestic resource base is considered important for India’s long-term economic stability.
India’s real GDP at constant prices is estimated to reach ₹322.58 lakh crore in 2025–26, compared to ₹299.89 lakh crore in 2024–25. This growth shows that India continues to maintain its position among the world’s leading fast-growing economies. Government final consumption expenditure (GFCE) also increased to ₹33.95 lakh crore in 2024–25, reflecting increased public spending and government efforts to support economic activity.
18% increase in foreign investment
Despite global economic uncertainties, foreign investor confidence in India remains strong. Total foreign direct investment (FDI) into India increased to $47.87 billion during the April to December period of the current financial year 2025–26, an increase of 18% over the same period last year. This growth shows that India remains an attractive investment destination for global investors. Overall, India recorded FDI inflows of $73.31 billion in the first nine months of the fiscal year, including reinvestment income.
According to the Department for Promotion of Industry and Internal Trade, Singapore remained the largest source of FDI into India during this period, while the US remained at the second position.
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