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India’s Economic Growth Remains Strong

Infrastructure expansion, manufacturing growth, and strong domestic demand sustain India’s position among the fastest-growing major economies

Deeksha Upadhyay 27 February 2026 09:29

India’s Economic Growth Remains Strong

India continues to remain one of the fastest-growing major economies in the world, supported by robust infrastructure development, expanding manufacturing activity, and strong domestic demand. According to assessments by the Reserve Bank of India and the Ministry of Finance, India’s economic performance reflects resilience despite global economic uncertainties such as inflation, geopolitical tensions, and supply chain disruptions.

Infrastructure development has emerged as a key driver of economic growth. Government investments in roads, railways, ports, and digital infrastructure have improved connectivity, boosted productivity, and created employment opportunities. These investments have also encouraged private sector participation and supported long-term economic expansion.

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The manufacturing sector has shown steady growth, supported by policy initiatives such as production-linked incentive (PLI) schemes and efforts to promote domestic production. Increased manufacturing activity strengthens exports, reduces import dependence, and enhances India’s industrial capacity.

Strong domestic demand has also played a crucial role in sustaining economic growth. Rising consumption, increasing urbanization, and improved access to financial services have contributed to economic expansion. Growth in sectors such as services, construction, and technology has further strengthened overall economic performance.

Sustained economic growth is significant for supporting employment generation, poverty reduction, and improved living standards. It also enhances government revenues, enabling greater investment in social welfare and development programmes.

Overall, India’s strong economic growth reflects the effectiveness of policy reforms, infrastructure investment, and industrial expansion. It positions India as a key driver of global economic growth and supports its long-term development goals.

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