Key Takeaways
- India's economy is service-led, with the Services sector contributing over 50% to the GDP.
- Growth is powered by strong domestic consumption, government reforms, and a world-class digital infrastructure.
- Inflation is actively managed by the Reserve Bank of India (RBI) to balance growth and price stability.
The Engine of a Rising Power
India's economy is one of the fastest-growing major economies in the world. Understanding its composition and key drivers is fundamental to grasping the opportunities it presents.
GDP Composition: A Service-Led Economy
India's GDP Composition (Approx.)
Source: Data adapted from World Bank and national sources.
Key Growth Drivers
Domestic Consumption
A massive, young population with rising incomes creates strong domestic demand.
Digital Infrastructure
The "India Stack" (Aadhaar, UPI) has enabled a massive digital transformation.
Inflation Dynamics
Inflation is a key metric monitored by the Reserve Bank of India (RBI). It is primarily measured by the Consumer Price Index (CPI). Factors influencing inflation in India include food and fuel prices, currency exchange rates, and global commodity prices. The RBI uses monetary policy, primarily by adjusting interest rates, to keep inflation within a target range, balancing economic growth with price stability.