Page 155 - Hitachi IR 2025

MANAGEMENT DISCUSSION & ANALYSIS
Annexure - A to Board’s Report
Management discussion & analysis
Economic overview
India economy
The Indian economy is projected to continue with its
growth trajectory, with an estimated growth of 6.50%
in FY 2024-25, according to the second advance
estimates released by the National Statistical Office
(NSO), as compared to 9.20% economic growth
in FY 2023-24. India’s economic growth reflects
a steady and resilient performance in a dynamic
global economic environment. The Indian economy
continues to be driven by a revitalised manufacturing
base and a thriving services sector, and supported by
key reform-based policies of the government.
Source: https://www.mospi.gov.in/sites/default/files/press_
release/PRESS-NOTE-ON-SAE-2024-25-Q3-2024-25-
FRE-2023-24-and-FE-2022-23-M1.pdf.
In spite of challenges like stagnant wages affecting
domestic consumption, slowing global demand
and climate disruptions, India maintains its status
as the fastest growing economy, set to dominate
the global economic landscape. With global growth
expected to be around 2.70% in 2025 and 2026,
India’s performance underscores its resilience and
growing significance in shaping the world’s economic
trajectory and establishing its role as a key driver of
economic stability.
As per International Monetary Fund’s (IMF) list of
World GDP Rankings 2025, India is currently among
the top five largest economies in the world, with a
GDP of USD 3.89 trillion (` 332.50 Lakh Crores) at
current prices, having grown at an impressive rate in
FY 2023-24. Despite global uncertainties, the Indian
economy demonstrated remarkable resilience in 2024,
characterised by strong GDP growth, substantial foreign
exchange reserves, and record levels of foreign direct
investment (FDI) inflows. Additionally, it is currently the
third‑largest economy in the world in terms of GDP
based on purchasing power parity (PPP) with a GDP
size of USD 16.02 trillion (` 1,369.31 Lakh Crores), as
per the data from IMF.
Industry structure and developments
Strong growth in electricity demand
Global electricity demand rose by 4.30% in CY 2024
and is forecast to continue to grow at close to 4%
out to CY 2027. Rising global electricity demand is
primarily fueled by growing expansion of electrification,
industrial production, growing electricity consumption
by data centers and growth in electric vehicles. Over
the next three years, global electricity consumption is
forecast to rise by an unprecedented 3,500 TWh, at
its fastest pace in years over the Calender Year (CY)
Economic outlook – growth projections (%)
6.50
6.50
6.50
4.80 4.60
3.30
4.50 3.30
3.20
4.30
4.20
4.20
1.90
1.80
1.70
India China World Advanced
Economies
Emerging Market
and Developing
Economies
ESTIMATE PROJECTIONS
2024 2025 2026
Source: https://www.imf.org/en/Publications/WEO/Issues/2025/01/17/world-economic-outlook-update-january-2025
Note: The USD exchange rate as on March 28, 2025 is ` 85.47.
Integrated Annual Report 2024-25
153