India's GDP Estimation Shows Optimistic Growth, but Challenges Lurk

New Delhi, January 2025 - The country's Gross Domestic Product (GDP) for the fiscal year 2024-25 has been estimated at Rs. 187.95 lakh crores (US$ 2.2 trillion), representing a significant growth rate of 6.5% compared to the previous year.

In terms of unicorn startups, India boasts 118 successful ventures with a combined valuation exceeding Rs. 3.0 lakh crore (US$ 354 billion) as of January 2025. The government's focus on renewable energy is also evident, with plans to achieve 40% of its energy from non-fossil sources by 2030.

Furthermore, India has committed to achieving Net Zero Emissions by 2070 through the 'Panchamrit' strategy, and presently ranks third in the renewable energy country attractive index.

However, according to McKinsey Global Institute, India needs to create over 90 million non-farm jobs between 2023 to 2030 in order to boost productivity and economic growth.

Meanwhile, the current account deficit (CAD) for Q3 of FY25 stood at Rs. 98,095 crore (US$ 11.5 billion), an increase from Rs. 88,712 crore (US$ 10.4 billion) in Q3 of FY24.

Analysts predict that as several India's trade partners face economic slowdowns, the contribution of merchandise exports may waver in the coming years. Indian exports are expected to reach US$ 1 trillion by 2030, according to Minister of Commerce and Industry Piyush Goyal.

The article concludes with an optimistic outlook for India’s growth despite several challenges that may hinder its progress.

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