India’s economy continues to display robust growth across diverse sectors, reflecting strong domestic capacity, rising global demand, and strategic digital innovation. From traditional exports like tea to cutting-edge fields such as artificial intelligence (AI), India is reinforcing its status as an emerging economic powerhouse.
Tea Exports and Production Are on the Rise
India’s tea industry recorded nearly 10% growth in exports in 2024, reaching 254.67 million kilograms compared to 231.69 million kg in 2023, according to the Tea Board. Northern India saw a 9.79% production increase to 154.81 million kg, while Southern India’s output rose by 10.11% to 99.86 million kg. In Q1 2025, Northern India continued its upward trend with a 14.38% increase, though Southern India faced a similar percentage decline. Overall, this growth signals renewed competitiveness in the global tea market, supported by favorable weather and productivity gains.
Export Target of US$ 1 Trillion by FY26
India’s external trade reached a record US$ 825 billion in FY25, rising from US$ 778 billion in FY24. Union Minister Piyush Goyal expressed confidence in surpassing US$ 1 trillion in exports by FY26, despite ongoing global conflicts. The services sector—particularly IT, telecom, finance, and transport—played a major role, contributing a record US$ 386.5 billion. The World Bank retained India’s GDP growth forecast at 6.3%, contrasting sharply with the global average of just 2.3%.
India’s AI Market to Triple by 2027
India’s artificial intelligence sector is projected to surpass US$ 17 billion by 2027, as per a Boston Consulting Group (BCG) report. India already holds 16% of the global AI talent pool and has over 600,000 professionals in the field. Growth drivers include strong digital infrastructure (Aadhaar, UPI, DigiLocker), over 700 million internet users, and the upcoming launch of 45 new data centers. The IndiaAI initiative, backed by US$ 1.17 billion, plans to deploy over 10,000 GPUs to boost national computing power. AI adoption is becoming a strategic imperative for businesses in India.
Probiotics Market Grows with Health-Conscious Consumers
India’s probiotics market has doubled in five years, hitting US$ 242 million in 2025 with 22% year-on-year growth. Rising awareness around gut health and immunity has driven demand, particularly among young, wellness-focused consumers. Major players include pharma brands like Sun Pharma and Zydus, and dairy leaders like Amul and Mother Dairy. Amul alone distributes 3 million liters of probiotic buttermilk daily. The market is further supported by increased consumer education and the popularity of preventive healthcare.
Together, these developments underscore India’s broad-based economic momentum. Whether in traditional sectors like tea or emerging areas like AI and wellness, the country continues to blend legacy strengths with innovation, positioning itself as a resilient and forward-looking global economic player.
