Page 23 - Policy Economic Report - August 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

corporate, financial, and external balance sheets. Credible inflation management and increasing policy
predictability have also played a central role.

S&P in its report details the key strengths of the Indian economy, which have enabled India to stand out
as one of the fastest-growing major economies globally, with real GDP growth averaging 8.8 per cent from
FY22 to FY24, the highest in the Asia-Pacific region. Monetary policy reforms, particularly the adoption of
an inflation-targeting regime, have anchored inflation expectations more effectively, the agency stated.
S&P has also recognised that despite global headwinds and price shocks, India has demonstrated
resilience by maintaining overall price stability.

The report further observes that India’s external and financial positions remain strong and the democratic
institutions continue to ensure policy continuity and long-term economic stability.

Looking ahead, S&P projects GDP growth of 6.5 per cent in FY26 and a continued momentum over the
next three years. The agency suggested that a narrowing fiscal deficit and continued public investment
could support further positive rating actions. The report also noted that the impact of recently imposed
U.S. tariffs is expected to be limited, owing to India’s large and resilient domestic consumption base.

7. India Launches a Pioneering India Electric Mobility Index (IEMI) to Track States/UTs Progress in EV
Transition- Niti Aayog

NITI Aayog launched the India Electric Mobility Index (IEMI), a first-of-its-kind tool developed to
comprehensively track and benchmark the progress of States and Union Territories (UTs) in achieving their
Electric Mobility goals.

The India Electric Mobility Index (IEMI) tracks, evaluates, and scores all Indian States and UTs out of 100
across 16 indicators under three-core themes: Transport Electrification Progress to capture demand-side
adoption, Charging Infrastructure Readiness to track allied charging infrastructure development and EV
Research and Innovation Status: Covers supply-side ecosystem R&D efforts.

The IEMI enables evaluation across states and union territories, identifying key drivers of success as well
as areas requiring targeted interventions. The Index aims to inform decision-making, foster healthy
competition among states, and promote sharing of best practices.

The Index underscores the importance of state-level coordination, integrated planning, and cross-sectoral
collaboration in achieving India’s electric mobility vision. By identifying strengths and gaps, the Index aims
to support states in aligning with national goals while addressing local needs.

India seeks to attain a 30% share of electric vehicles, in the total vehicles sold, by 2030. Sale of EVs in India
went up from 50,000 in 2016 to 2.08 million in 2024 as against global EV sales having risen from 918,000
in 2016 to 18.78 million in 2024. Thus, India’s transition has been slow to start, but it is picking up. India’s
EV penetration was only about one – fifth of the global penetration in 2020, but has picked up to over

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