Page 15 - Policy Economic Report - August 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Figure 9: Number of people living in extreme poverty: September 2024 data vs. latest data

Source- World Bank Poverty and Inequality Platform (2025)

5. Indian Economy

India’s economic growth

• According to Ministry of Statistics and Programme Implementation (MoSPI), India’s real GDP
which measures the output of economy after removing effect of inflation expanded by 6.5% in
2024-25. The Reserve Bank of India expects this pace to continue into 2025–26.

• India’s economy shows robust expansion, with real GDP for FY25 estimated at Rs. 1,87,97,000
crore (US$ 2.20 trillion), from Rs. 1,76,51,000 crore (US$ 2.06 trillion) in FY24 with a growth rate
of 6.5%.

• By 2030, India is set to become the world’s third-largest economy with a projected GDP of $7.3
trillion.

• Capital expenditure (CAPEX) builds long-term assets that boost national investment, enhance
efficiency, create jobs, and raise productivity while generating sustained revenue. In 2024-25,
capital expenditure was ?10.52 trillion, surpassing the revised estimates. The quality of
expenditure, measured as the ratio of capital expenditure to revenue expenditure, has remained
higher than 0.27 for the past three years, almost double the pre-COVID average.

• In July 2025, the Goods and Services Tax (GST) completed eight years since its rollout. By
improving transparency and efficiency, GST has helped lay the foundation for a stronger, more
integrated economy. There are over 1.52 crore active GST registrations; Top 5 states accounted
for ~50% of total Active GST Tax Payers.

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