India's Growth Propelled by Strong Reforms, Digital Push, Rising Investments: Report
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
India, the world's fastest-growing major economy, propelled by strong reforms, infrastructure push, major digital initiatives, and rising investments, is positioned as a global powerhouse on track to become the fourth-largest economy in 2025, according a report by Rubix Data Sciences.
Prime Minister Narendra Modi also said at an event in Cyprus that India will soon become the third-largest economy in the world. "India is one of the biggest emerging economies. We have implemented tax reforms, Goods and Services Tax, rationalised corporate tax, decriminalised laws, and are focussing on 'trust of doing business', along with ease of doing business."
India's Gross Domestic Product (GDP) is expected to double from USD 2.1 trillion in 2015 to USD 4.2 trillion in 2025, making it the world's fourth-largest economy by the end of 2025. Projections also indicate that by 2028, India will surpass Germany to become the world's third-largest economy.
Retail inflation was down to a six-year low of 4.6 per cent in FY2025 and is expected to dip further; the Reserve Bank of India (RBI) has reduced its inflation forecast for FY2026 to 4 per cent. Fiscal deficit is set to decline from 4.8 per cent of GDP in FY2025 to 4.4 per cent in FY26, reinforcing the broader commitment to fiscal discipline and prudent macroeconomic management. All these factors put India on a positive growth trajectory.
India has firmly established itself as a leading global investment destination, with cumulative Foreign Direct Investment (FDI) inflows crossing the USD 1 trillion mark (April 2000 to December 2024), a testament to its strong economic fundamentals and investor-friendly policies.
In 2024, equity deals, including Initial Public Offerings (IPOs), hit a record USD 70 billion. Of this, about 75 per cent of the capital-funding IPOs were from domestic sources, a significant increase from just 25 per cent three years ago, the report said. In FY25, India's Unified Payments Interface (UPI), which handles an average of 580 million transactions daily, processed transactions worth INR 260.6 trillion, achieving a 59 per cent CAGR from FY21 to FY25.
Moreover, India has the third-largest startup ecosystem in the world. The number of Department for Promotion of Industry and Internal Trade (DPIIT) recognised startups grew from around 500 in 2016 to 1,59,157 (as of January 15, 2025).
India's IT-BPM sector aims to double its revenue to USD 500 billion by 2030 from about USD 250 billion currently, according to Rubix. India's export composition is led by IT services with a 53 per cent share; followed by software products at 25 per cent; BPM and Engineering and R&D (ER&D) at 22 per cent.
Deeptech Startup Ecosystem
India is harnessing its IT expertise to fuel the growth of deep tech startups working across critical domains such as defence, AI, quantum computing, semiconductors, and space technology, which are becoming central to India's ambition of achieving technological self-reliance and global competitiveness.
India has one of the world's largest tech startup ecosystems, with over 35,000 tech startups, including nearly 4,000 focused on deep tech innovation, indicating India's position as a rising global innovation hub. In 2024 alone, deep tech startups in India attracted USD 1.6 billion in funding, a 78 per cent increase over 2023. This surge demonstrates growing investor confidence in India's capability to build foundational technologies.
Seed and early-stage deep tech ventures captured over 35 per cent of the total tech startup funding, indicating strong support for emerging innovation at the grassroots level. Notably, 87 per cent of all tech funding was directed towards startups developing AI-driven solutions, emphasising AI's critical role in shaping future economic and industrial landscapes.
Further, the government has also embarked on major initiatives such as the National Quantum Mission (NQM) at a total cost of INR 60 billion from 2023- 24 to 2030-31 and the ambitious IndiaAI Mission to strengthen the AI innovation ecosystem by allocating INR 103 billion over five years. The Union Budget 2025-26's allocation of INR 5,000 million (USD 58 million) for a Centre of Excellence in AI for Education will put further focus on deep tech technology.
"India's economic outlook remains positive as it is poised to surpass Japan and become the fourth largest economy by the end of 2025, anchored by its proven resilience to external shocks over recent years. This resilience is expected to continue, supported by a broad-based recovery in capital expenditure, ongoing structural reforms, and rapid advancements in digital and physical infrastructure," the report said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Entrepreneur
an hour ago
- Entrepreneur
Weekly Recap: Top 7 Funding Deals of the Week (July 5–11)
Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. The Indian startup ecosystem continues to thrive, attracting investor attention from all corners, whether it's fintech, food-tech, pharmaceuticals, or digital media. From the bustling streets of Mumbai to the innovative hub of GIFT City, we witnessed a wave of exciting funding deals this week designed to spark innovation, broaden reach, and ramp up operations. Let's take a look at seven standout funding deals that showcase the vibrant and dynamic nature of India's entrepreneurial landscape. Credit Wise Capital Inception: 2018 Founders: Aalesh Avlani and Gurpreet Singh Sodhi Based-out: Mumbai Credit Wise Capital offers a range of financial services, including two-wheeler loans, personal loans, and various insurance products like health and life insurance. It also provides digital lending services, including tech-driven underwriting and collections, as well as bike servicing and roadside assistance. Funding Amount: USD 24.10 Million Investor: Trident Growth Partners (TGP) Khetika Inception: 2017 Founders: Dr Prithwi Singh, Darshan Krishnamurthy, and Raghuveer Allada Based-out: Mumbai Khetika is a clean-label food brand that offers staples free from preservatives, including rice, wheat, pulses, dry fruits, and fresh batters. By sourcing directly from Indian farmers, Khetika highlights traditional methods like stone-grinding and fermentation, ensuring that products such as chutneys, spices, and millet-based foods are packed with nutrition and authenticity. Funding Amount: USD 18 Million Investors: Narotam Sekhsaria Family Office, Anicut Capital, Incofin India Progress Fund, Rajasthan Gum, Shree Ram India Gums Arteria Technologies Inception: 2007 Founders: Parag Sushilkumar Jain and Sriram Kanuri Based-out: Bengaluru Arteria Technologies focuses on digitising supply chains using SAP solutions. Its flagship platform, FinessArt, connects supply chain participants, providing analytics, financial visibility, and decision-making tools. It also provides expert consulting services focused on SAP, covering everything from implementation and support to NetWeaver adoption. Funding Amount: USD 12.05 Million Investor: ICICI Venture InPrime Finserv Inception: 2021 Founders: Sneh Thakur, Manish Raj, and Rajat Singh Based-out: Bengaluru InPrime Finserv delivers customised credit solutions to underserved Informal Prime Households, including micro-entrepreneurs and small retailers. Its tech-first model integrates flexible repayment channels and gamified financial literacy programs to promote financial inclusion and empowerment. Funding Amount: USD 6.02 Million Investors: Pravega Ventures, Z47, InfoEdge Ventures, Kettleborough VC Sai Parenterals Limited Inception: 2001 Founder: Anil Karusala Based-out: Hyderabad Sai Parenterals is a pharmaceutical manufacturer offering CDMO services and branded exports. It produces sterile injectables, oral solids, and topical preparations. With five facilities approved by regulatory bodies like TGA and WHO-GMP, it covers the full pharmaceutical value chain from R&D to global distribution. Funding Amount: USD 6.02 Million Investors: Samarsh Capital, Vyom Partners, Blue Lotus Capital Chai Bisket Inception: 2015 Founders: Sharath Chandra and Anurag Reddy Based-out: Hyderabad Chai Bisket is a digital entertainment company known for vernacular content creation, influencer marketing, and film production. Its creative platform "The Stage" nurtures talent through events and workshops, while its new microdrama app "Chai Shots" targets short-form video consumption. Funding Amount: USD 5 Million Investors: InfoEdge Ventures, General Catalyst Belong Inception: 2024 Founders: Ankur Choudhary, Ayush Singh, Sai Sankar M, and Savitri Bobde Based-out: GIFT City Belong is a fintech platform tailored for NRIs, offering services such as fixed deposits, wealth management, and tax filing. The startup aims to simplify cross-border financial management for global Indians with user-friendly and compliant financial solutions. Funding Amount: USD 5 Million Investors: Elevation Capital, Relentless Ventures, and angel investors including Abhiraj Singh Bahl, Varun Khaitan, Akshant Goyal, and Varun Alagh This week's funding deals highlight the robustness and variety of India's startup scene, with capital flowing into finance, food, pharma, tech, and media—signaling investor confidence across the board.
Yahoo
2 hours ago
- Yahoo
MINISO Group Holding Limited Unsponsored ADR (MNSO) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest trading session, MINISO Group Holding Limited Unsponsored ADR (MNSO) closed at $17.74, marking a -1.93% move from the previous day. This change lagged the S&P 500's daily loss of 0.33%. Elsewhere, the Dow lost 0.63%, while the tech-heavy Nasdaq lost 0.22%. Coming into today, shares of the company had lost 1.47% in the past month. In that same time, the Retail-Wholesale sector gained 0.67%, while the S&P 500 gained 4.07%. Investors will be eagerly watching for the performance of MINISO Group Holding Limited Unsponsored ADR in its upcoming earnings disclosure. In the meantime, our current consensus estimate forecasts the revenue to be $672.03 million, indicating a 21.03% growth compared to the corresponding quarter of the prior year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.12 per share and revenue of $2.9 billion, indicating changes of -2.61% and +22.75%, respectively, compared to the previous year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MINISO Group Holding Limited Unsponsored ADR. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. MINISO Group Holding Limited Unsponsored ADR is currently a Zacks Rank #5 (Strong Sell). In terms of valuation, MINISO Group Holding Limited Unsponsored ADR is presently being traded at a Forward P/E ratio of 16.22. This indicates a discount in contrast to its industry's Forward P/E of 17.97. It is also worth noting that MNSO currently has a PEG ratio of 1.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 2.02 based on yesterday's closing prices. The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 209, putting it in the bottom 16% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MINISO Group Holding Limited Unsponsored ADR (MNSO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
How does a weaker dollar impact US vacationers?
The decline in the value of the U.S. dollar this year has made Americans' vacations abroad more expensive than in recent years, which could stretch travelers' budgets more than anticipated. So far in 2025, the U.S. dollar has declined about 10% relative to a basket of popular foreign currencies, according to The Wall Street Journal's U.S. Dollar Index (DXY). The weaker dollar means that Americans' purchasing power overseas is generally lower than it was in the past few years, with vacationers facing relatively higher prices. "Welcome to inflation again," Clint Henderson, managing editor at The Points Guy, told FOX Business. "You're looking at prices being anywhere from 8% to as high as 14% higher across the board, especially in Europe, due to the weakness of the U.S. dollar." Dollar Slides To 3-Year Low On Report Trump Plans To Name Next Fed Chair Early "To put it in perspective, the U.S. dollar has been on a multiyear tear, so we've really benefited the last couple of years – it's just with the way things are now, prices are going to be slightly higher than they have been the past couple of years for Americans traveling to Europe specifically and also Asia, especially Japan," he said. Read On The Fox Business App Henderson noted that those who had already locked in prices months ago may not see the impact in that line item of their travel budget – though the dollar's decline is likely to still be felt in other aspects of travel spending. "Hopefully most folks have already locked in their hotel prices, so they're not going to be paying a lot more for hotels," he added. "But food costs, transportation costs… everything's going up in price." Trump Announces Higher Tariff Rates For More Countries In Letters Published On Social Media One bright spot for travelers' budgets can be found in relatively cheaper flights to and from vacationers' destinations, Henderson noted. "The good news is, I'm calling this the 'summer of savings' when it comes to airfare, because prices are down substantially for airfare, so hopefully any more expense you're paying when you're traveling has been sort of balanced by cheaper airfare," he explained. The dollar's recent downturn comes after it was relatively stronger than foreign currencies in the last few years. Tariffs Will Revert To April Levels If Countries Don't Make A Deal By August 1, Bessent Says David Bahnsen, managing partner and chief investment officer of the Bahnsen Group, told FOX Business that the main reason "is the fact that it had gone up 10% the year before, and in 2025 was just giving that move back." "The DXY right now is basically where it was three years ago – not higher or lower, though it spent most of the last three years higher than it is now, and it spent most of the ten years before that lower than it is now," he said. The volatility and downward trend the dollar has experienced this year stems from uncertainty over trade policy and tariffs, as markets take the higher costs into account. "The specific catalyst besides the fact that it was over-priced relative to other currencies and due for a correction is this trade and tariff volatility. Imports get more expensive with a weaker dollar even as exports get cheaper," Bahnsen article source: How does a weaker dollar impact US vacationers?
