What reforms are boosting India's economy?

Infrastructure development, tax changes, GST reform, and new labor codes are significantly boosting India's economy.

What is the main challenge for India's job market?

Creating high-productivity, well-paid jobs for the majority of the workforce remains India's central employment challenge.

What is Arvind Panagariya's outlook on India's growth?

Arvind Panagariya is optimistic about India's short to medium-term growth prospects, expecting it to easily exceed 7%.

Home / Business and Economy / India's Growth Surge: Reform Boosts Economy

India's Growth Surge: Reform Boosts Economy

24 Nov, 2025

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Summary

India's growth outlook is strong due to infrastructure and reforms.
Job creation remains a critical challenge for India.
Deeper reforms are urged to achieve higher growth rates.

India's Growth Surge: Reform Boosts Economy

India's economic outlook is exceptionally strong, with forecasts consistently underestimating its growth potential. Recent governmental progress in infrastructure development, personal income tax reforms, a two-rate GST system, and the implementation of four labor codes are key drivers. These advancements, coupled with a robust 7.8% growth in the first quarter, suggest India will surpass current projections and exceed the 7% growth mark in 2025-26, with potential for acceleration if states actively engage in further reforms.

The primary challenge facing India is the creation of sufficient high-productivity, well-paid employment opportunities. A significant portion of the workforce remains in low-productivity agricultural roles or self-employment within small establishments. Breaking free from historical industrial structures requires addressing the concentration of capital and skilled labor in specific sectors and fostering growth in labor-intensive areas.