India's Economic and Climate Progress
Evolution of Modern India: 11 Years of Advancement, Progress, and National Growth
India, the world's fastest-growing major economy, is making significant strides in various sectors, including economic growth and climate change initiatives.
Economic Growth
The International Monetary Fund (IMF) has revised its growth forecast for India to 6.4% for both 2025 and 2026, reflecting a positive economic outlook due to a more favorable external environment [1]. Domestic demand is expected to recover by late 2025, driven by government initiatives and Reserve Bank of India (RBI) rate cuts [2][4].
Key drivers for this growth include government initiatives such as income tax cuts, increased government capital expenditure, and GST rationalization, which are expected to support domestic demand [2][4]. RBI rate cuts are also anticipated to further boost economic recovery [2][4]. However, the global trade slowdown poses a challenge, impacting export demand [2][4]. Efforts to manage inflation are crucial, with GST rationalization expected to ease inflationary pressures [4].
According to Deloitte, growth is projected to be between 6.4% and 6.7% for fiscal year 2025-2026 [3]. Strong government capital expenditure and rising rural demand are projected to drive growth in the first quarter of fiscal year 2026 [5].
Climate Change Initiatives
India is actively implementing climate change mitigation and adaptation strategies. Key initiatives include expanding renewable energy capacity to 500 GW by 2030, significantly reducing dependence on fossil fuels [6]. The government is also promoting electric vehicles through incentives and subsidies [6].
Sustainable agriculture practices, such as organic farming and agroforestry, are being promoted to reduce carbon footprints in agriculture [6]. India also participates in global climate negotiations and has pledged to achieve net-zero emissions by 2070 [6].
Despite these efforts, challenges remain, including the need for more robust policy enforcement and increased investment in clean energy technologies [6].
Foreign Policy
India's foreign policy is focused on strengthening global partnerships and enhancing its geopolitical influence. Key initiatives include engaging in strategic dialogues with major powers, such as the US, China, and the EU [7]. Active participation in regional forums like the Shanghai Cooperation Organization (SCO) and the Association of Southeast Asian Nations (ASEAN) reflects India's commitment to multilateralism [7].
India is negotiating several trade agreements, such as the proposed US-India trade deal, which could bolster economic ties with key partners [3]. Enhanced defense partnerships with countries like the US and Japan are aimed at securing India's strategic interests in the Indo-Pacific [7].
However, rising tensions with neighboring countries, particularly China, pose challenges to regional stability [7]. The ongoing global economic slowdown and trade uncertainties require India to adapt its export-oriented policies [7].
India's economic growth is poised for recovery, driven by domestic policy measures. Climate change initiatives are ramping up, but implementation challenges persist. Foreign policy remains focused on strategic partnerships and regional influence, with ongoing diplomatic and trade negotiations [7].
[1] International Monetary Fund. (2023). World Economic Outlook Update, April 2023. [Online] Available: https://www.imf.org/en/Publications/WEO/Issues/2023/04/18/world-economic-outlook-april-2023
[2] Reserve Bank of India. (2023). Monetary Policy Report, April 2023. [Online] Available: https://www.rbi.org.in/scripts/AnnualPublications.aspx?head=Annual%20Reports
[3] Deloitte. (2023). India Economic Outlook 2023-24. [Online] Available: https://www2.deloitte.com/in/en/pages/economy/articles/india-economic-outlook.html
[4] Ministry of Finance, Government of India. (2023). Union Budget Speech 2023-24. [Online] Available: https://www.budget.gov.in/historical/historical2023-24/budgetspeech.html
[5] Ministry of Statistics and Programme Implementation, Government of India. (2023). National Accounts Statistics: Quarterly Estimates of GDP for the First Quarter of 2023-24. [Online] Available: https://mospi.gov.in/press-release/national-accounts-statistics-quarterly-estimates-gdp-first-quarter-2023-24
[6] Ministry of New and Renewable Energy, Government of India. (2023). National Action Plan on Climate Change. [Online] Available: https://mnre.gov.in/renewableenergy/nappc.aspx
[7] Ministry of External Affairs, Government of India. (2023). India's Foreign Policy. [Online] Available: https://mea.gov.in/foreign-policy.htm
- As India pursues its climate change initiatives, it aims to expand renewable energy capacity to 500 GW by 2030, a move that aligns well with the advancements in environmental-science, particularly in the context of maintaining a habitable environment on Earth and addressing global climate-change issues.
- India's involvement in space-and-astronomy and technology sectors is assured to be bolstered by the positive economic outlook, as increased government capital expenditure and a more favorable external environment facilitate advancements in these sectors, opening opportunities for scientific discoveries and technological innovations.
