NEW DELHI: India’s economy is showing strong signs of recovery and growth, with inflation easing and exports reaching new highs — bringing much-needed relief to households and reinforcing the country’s position in global trade; DD News reported.

Consumer Price Index (CPI) inflation fell to 2.10% in June 2025, the lowest level since January 2019, and well within the Reserve Bank of India’s target range of 4% ±2%. This decline, aided by a favourable base effect and a sharp year-on-year drop in food inflation to -1.06%, has significantly reduced the cost burden on households. Lower prices for vegetables, pulses, cereals, milk, spices, meat, fish, sugar, and other essentials have played a key role in this trend.

Wholesale inflation has also moderated. The Wholesale Price Index (WPI) recorded a marginal decline to -0.13% in June 2025, reflecting reduced prices for food items, crude oil, natural gas, mineral oils, basic metals, and more. The WPI Food Index fell to -0.26%, further indicating a cooling of food prices.

Rural economic conditions are improving as well. According to the July 2025 Rural Economic Conditions and Sentiments Survey (RECSS) by NABARD, 76.6% of rural households reported increased consumption, while 39.6% noted higher incomes over the past year. Rural inflation stood at just 1.72% in June 2025—a drop of 394 basis points from the previous year—highlighting the effectiveness of supply-side measures and job creation efforts.

Agricultural productivity has supported this price stability. In 2024-25, rice production rose to 1,490.74 lakh metric tonnes (LMT), up from 1,378.25 LMT the previous year, while wheat output increased by 42.15 LMT to 1,175.07 LMT. Government interventions such as the Open Market Sale Scheme (Domestic), targeted import-export facilitation during shortages, stock limits, and the increase in income tax exemption limits (Rs. 12 lakh, or Rs. 12.75 lakh for salaried individuals with standard deduction) have further helped curb inflation. The RBI’s decision to lower the repo rate from 6.5% to 5.5% in January 2025 has also supported economic growth while maintaining price stability.

On the external trade front, India’s exports in the first quarter of FY 2025–26 (April–June 2025) climbed to US$ 210.31 billion, up 5.94% from the same period last year. Imports rose by 4.38%, narrowing the trade deficit by 9.4% to US$ 20.31 billion. Services exports surged by 10.93% to US$ 98.13 billion, while non-petroleum exports rose 5.98% and non-gem and jewellery exports increased by 7.23%. Key growth sectors included electronic goods, tea, jute products, meat, dairy, poultry, and other cereals. Notably, the Make in India programme has bolstered electronics exports, while the Mission for Aatmanirbharta in Pulses has reduced reliance on imports.

India’s total exports reached an all-time high of US$ 824.9 billion in FY 2024–25, marking a 6.01% year-on-year increase.

This momentum is being powered by a series of strategic government initiatives. The Foreign Trade Policy (FTP) 2023, along with RoDTEP and RoSCTL schemes, and the Districts as Export Hubs initiative, have enhanced India’s export competitiveness. Infrastructure development under the National Logistics Policy and PM GatiShakti, combined with increased funding for Production-Linked Incentive (PLI) schemes in sectors such as electronics, automobiles, and textiles, is accelerating domestic manufacturing. Efforts like the Bharat Mart in Dubai are providing MSMEs access to global markets, while compliance reforms—including the decriminalization of over 3,700 legal provisions since 2014—and the National Single Window System are improving the ease of doing business. The Ministry of MSME has also established 65 Export Facilitation Centres to support small enterprises.

India’s real GDP grew by 6.5% in 2024–25, according to the Ministry of Statistics and Programme Implementation. The Reserve Bank of India projects similar growth for 2025–26. With a projected GDP of US$ 7.3 trillion by 2030, India is poised to become the world’s third-largest economy, driven by robust domestic demand, a youthful workforce, and sustained policy reforms.

The convergence of easing inflation, rising exports, and proactive governance highlights India’s growing economic resilience and its increasing prominence in the global economic landscape.