The Indian economy has weathered the slowdown caused by the global financial crisis better than other emerging nations. The country has benefitted from low oil prices in recent years. According to IMF data, the Indian economy grew by 7.3% in 2018. This is the largest growth in two years and the strongest since the second trimester of 2016.

Growth is supported by the resurgence of industrial activity, particularly in the manufacturing and construction sectors, and by the expansion of agriculture. Sectors that have experienced growth of over 7% include manufacturing, electricity, gas and water management, construction, public administration and defence.

However, major long-term challenges remain, particularly in terms of infrastructure, discrimination towards women and girls in industry, an inefficient energy production and supply system, ineffective application of intellectual property laws, inadequate transport and agricultural infrastructure, limited job opportunities outside of agriculture, high expenditure and few targeted subsidies, insufficient access to quality basic and higher education and ongoing migration from rural areas towards the cities.