JP Morgan Forecasts Robust Growth for India in 2025

India is emerging as a bright spot in the global economy, with JP Morgan projecting the country to lead global growth in 2025. In its latest report, the international financial firm has identified India as a safe haven among emerging markets, citing a combination of macroeconomic strengths, including falling inflation, improved liquidity, and lower government borrowing. These factors, along with a revival in consumption and investment, are expected to drive robust economic expansion.

JP Morgan has given India an “Overweight” rating in its emerging markets portfolio, indicating strong investor confidence.

The report highlights that demand-side drivers such as rising urban household income, improving rural conditions backed by a good monsoon, and easing input cost pressures are supporting growth momentum. India's strong domestic fundamentals are seen as providing resilience amid ongoing global trade uncertainties and geopolitical tensions.

Moreover, improved household balance sheets and increased corporate capex are expected to add further impetus to growth in the coming quarters.

Supporting this outlook, the Indian government has reiterated its commitment to boosting the economy through a multi-pronged approach. Minister of State for Finance Pankaj Chaudhary informed Parliament that measures such as strengthening trade competitiveness, encouraging foreign investment, and increasing public capital expenditure are being undertaken to help the country navigate global headwinds effectively. With a stable macroeconomic environment and proactive policy support, India is well-positioned to maintain its growth leadership in the year ahead.