India has pulled off something most developed economies couldn’t: taming inflation while maintaining growth momentum. While countries like the UK, Brazil, and Japan saw inflation accelerate in 2025, India recorded one of the sharpest declines globally. This macro victory directly impacts corporate margins and the real purchasing power of every rupee your portfolio generates.
The infrastructure story is even more compelling. Government CAPEX has nearly doubled since FY22, from ₹5.9 lakh crore to ₹11.2 lakh crore. For every rupee the government spends building roads, ports, and digital infrastructure, the economy gains ₹2.5 to ₹3.5 in GDP. A calculated multiplier effect that creates compounding returns across sectors.
Something fascinating is happening in India’s urban landscape. All top 10 fastest growing cities in the world are Indian: Surat, Agra, Bengaluru, Hyderabad, Nagpur. Wealth creation has moved beyond Mumbai, Delhi, and Bengaluru. Tier 2 cities are quietly becoming growth engines, and this geographic distribution of prosperity changes everything about where capital should flow.
The labor market is transforming in ways most people aren’t tracking. India’s gig workforce has exploded 55% in just four years, from 77 lakh to 1.2 crore workers. E-commerce and logistics lead, but BFSI, manufacturing, and retail follow closely. This represents over 2% of India’s total workforce now, reshaping how businesses scale, how people work, and how consumption patterns evolve.
Global capital is sending clear signals. FDI in services has shifted dramatically toward energy, gas, and information & communication. These sectors now capture nearly 48% of global services FDI, up from 27% pre-COVID. India is well positioned in these areas, but we need to move faster to capture this capital before others do.
Then there’s innovation. India has leaped from rank 81 to 38 in the Global Innovation Index since 2015. We’re now 3rd globally in scholarly publications, up from 7th in 2010. Indian universities in QS rankings have grown from 11 to 54 institutions. A structural shift in how India creates and commercializes knowledge.
The technology story is even sharper. India now ranks in the top 3 globally across 15+ critical technologies: 2nd in biological manufacturing and biofuels, 3rd in AI algorithms, quantum cryptography, and advanced aircraft engines. These rankings represent sectors where India has real research leadership that can translate into commercial advantage and export strength.
The Survey projects real GDP growth at 6.8 to 7.2% for FY27, with potential growth at around 7%. The headline number matters, but the structural forces beneath it matter more: controlled inflation, distributed urban growth, infrastructure multipliers, labor market flexibility, and innovation at scale.
For investors, these forces will define portfolio construction and returns over the next decade. India’s wealth creation story is accelerating, and the foundation looks more distributed, more innovation driven, and more resilient than ever before.
Disclaimer: : Content provided herein is for educational/ informational purposes only. Source: Economic Survey of India 2025-2026