India’s economy continues to stand out on the global stage with robust growth and low inflation, a combination few major economies are currently showing. In the latest data, India’s GDP is expanding at around 7.4%, making it the fastest‑growing major economy in the G20. At the same time, India’s annual inflation remains unusually low at about 1.3%, reflecting restrained price pressures even amid strong demand.
In contrast, Australia’s inflation has climbed to about 3.8%, significantly higher than India’s, while its economic expansion remains modest at around 2.1% in recent growth data. This highlights a stark difference in macroeconomic dynamics between the two nations: India is growing faster with relatively low price increases, while Australia faces inflation alongside slower growth. The higher inflation reflects ongoing pressures in housing, services, and energy, even as growth remains slower than in emerging economies.
Other advanced economies are also facing challenges. Across the Atlantic, the United States economy is growing more slowly than India, with real GDP expanding at around 2–2.5%, depending on the period measured. Annual inflation in the US has eased but remains higher than India’s, at around 2.7%, reflecting ongoing moderate price pressures across consumer goods and services.
The United Kingdom also faces inflation above target, with annual consumer prices rising by about 3.4%, while its GDP growth is subdued compared with India and the US, generally running in the low single digits. The combination of still elevated inflation and modest growth presents a different challenge for the UK’s economy.
China’s economy is also showing signs of moderation, with GDP growth around 4.5%, while inflation remains low at roughly 1.8%, reflecting weaker domestic demand and ongoing adjustments in its property and manufacturing sectors.
This comparison highlights India’s unique position in the G20, achieving strong growth without triggering high inflation, while other major economies, including China, face either slower growth or rising price pressures.
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