India's Growth Drivers
Services, Investment, and Domestic Consumption
India's GDP growth in recent years has been driven by: (1) government capital expenditure — the Union Budget 2025-26 allocated ₹11.21 lakh crore for capex, up from ₹10.18 lakh crore in FY25; (2) private consumption, which accounts for approximately 57% of GDP; (3) services exports, particularly software services and IT-enabled services (India's technology exports exceed $200 billion annually); and (4) manufacturing growth under Production Linked Incentive (PLI) schemes. Inflation-adjusted real wage growth — particularly in the rural sector — is a key constraint on consumption growth.
- Union Budget FY26 capex: ₹11.21 lakh crore (~3.4% of GDP)
- Private consumption share of GDP: ~57%
- India's services export growth: ~10–12% CAGR in recent years
- PLI scheme outlay across 14 sectors: ~₹1.97 lakh crore
● Tracked since March 13, 2026 · last seen May 05, 2026 · updates as the daily brief publishes
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