Economy of India

India's economy spans agriculture and food production, industry—including manufacturing, construction, mining and utilities—and services. These sectors connect rural production with urban markets and global supply chains, but their roles differ in output and employment. The Government of India's Economic Survey 2025–26 reports services as the largest component of gross value added; it put services at 53.6% of nominal GDP in the first half of fiscal year 2025–26.

Services include trade, transport, hospitality, finance, professional activities, communications and public services. Software and business services are especially important in India's service exports. Industry is broad, spanning traditional production and newer activities such as electronics and pharmaceuticals. Agriculture remains essential to food supply and rural livelihoods; the Economic Survey tracks crops, livestock and fisheries as distinct parts of the sector and emphasizes productivity, farm incomes and food security.

Household consumption is a major source of domestic demand, while private and public investment support productive capacity. The Economic Survey identifies consumption and investment as important growth drivers and describes public capital expenditure and infrastructure—such as transport, energy and digital connectivity—as means of strengthening productivity and market access. The effects of investment depend on whether it translates into productive capacity, jobs and improved access across regions.

India trades goods and services internationally. Merchandise imports and exports form a large part of its external trade, while service exports and remittances provide significant foreign-exchange receipts. In its 2025 Article IV assessment, the International Monetary Fund noted robust service exports and a contained current-account deficit, while also identifying global trade and financial uncertainty as risks. This illustrates how domestic growth is linked to international demand, capital flows, energy prices and trade policy.

Economic expansion has coincided with major gains in infrastructure and access to basic services, but it has not removed persistent disparities. The World Bank highlights widespread informal employment, low female labour-force participation, uneven access to quality health and education, and regional differences in development outcomes. Raising productivity and creating more secure, better-paid work are important challenges. Climate change and natural hazards also affect agriculture, infrastructure and livelihoods, making resilience part of economic planning.