India Powers Ahead As Global Growth Engine — Adds Nearly 7% To World GDP Rise: SBI Report

India’s growing economy is making a bigger mark on the world than ever before. According to a new report by SBI Research, India contributed around 6.7% of the total increase in the global economy in the financial year 2024–25 (FY25).

The report highlighted that as the world economy expanded by USD 4,118 billion, India alone added USD 297 billion to this growth. 

This means India accounted for nearly 7% of the global GDP rise, showing just how important the country has become in driving economic momentum worldwide.

SBI Major Contributor

What’s even more remarkable is the role played by the State Bank of India (SBI) in this story. The report noted that SBI, the country’s largest bank, contributed USD 44 billion through its asset growth. This contribution alone made up 1.1% of the entire increase in global GDP during FY25—a share bigger than the economic impact of many smaller countries.

SBI’s impact doesn’t stop there. The bank accounted for about 16% of India’s total GDP addition in FY25, underlining its central role in the Indian economy. In financial services, SBI contributed 8.7% to India’s Gross Value Added (GVA). Its GVA rose to Rs 1,38,533 crore in FY25, compared to Rs 1,32,157 crore the previous year, marking a steady 5% annual growth.

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Experts say this data proves that India is now among the key engines of global growth. While the US and China still hold the top spots, India is catching up quickly as one of the most significant contributors to the world economy.

As costs rise and many countries struggle to sustain momentum, India’s steady expansion and strong banking sector are helping not just its people but also supporting the global financial system.

World Fourth-Largest Economy

India became the world’s fourth-largest economy in 2025, driven by strong domestic reforms and the vision of Aatmanirbhar Bharat. It is now the fastest-growing major economy, with real GDP growing at 6.5% and nominal GDP almost tripling from Rs 106.57 lakh crore in 2014–15 to Rs 331.03 lakh crore in 2024–25.

In just the last year, nominal GDP rose by 9.9%, while real GDP increased by 6.5%. India is projected to keep this momentum, with growth expected between 6.3% and 6.8% in 2025–26. Exports have surged by 76% over the past decade, reaching US$825 billion, mainly due to strong performance in engineering goods, electronics, and pharmaceuticals.

Services exports more than doubled, growing from US$158 billion in 2013–14 to US$387 billion in 2024–25. Foreign investment has also boomed, with cumulative FDI inflows touching US$1.05 trillion and a record 27% jump in equity inflows during the first nine months of FY25 alone.

Digital payments have expanded rapidly, growing nine times in volume between FY18 and FY24, with UPI alone processing 172 billion transactions in 2024.

Inflation has been brought down significantly, dropping from an average of 8.2% between 2004 and 2014 to around 5% over the past decade.

Retail inflation fell to 4.6% in 2024–25, the lowest level since 2018–19. With this strong economic progress, India is on track to become the world’s third-largest economy by 2030, with a projected GDP of $7.3 trillion.