India vs Pakistan: Latest Economic Comparison 2025 – GDP, Growth, and Inflation

GDP: Size and Growth India: In 2025, India’s real GDP growth stands at 6.4%, making it one of the fastest-growing major economies globally. According to the IMF, India’s GDP at current prices has surpassed $4.19 trillion, underlining its economic momentum and resilience. Notably, the economies of individual Indian states like Maharashtra and Tamil Nadu now exceed the entire GDP of Pakistan, with Tamil Nadu’s GDP alone reaching about $419.74 billion in 2025. Pakistan: Pakistan’s real GDP growth for FY25 is estimated at 2.6%, reflecting ongoing challenges such as political instability, balance-of-payment issues, and high inflation. The country’s GDP at current prices is approximately $373–398 billion, which is less than a tenth of India’s GDP. Despite repeated IMF bailouts, Pakistan’s growth remains sluggish. Takeaway: India’s economy is over 10 times larger than Pakistan’s in nominal terms, and even key Indian states now individually outpace Pakistan’s total economic output. GDP Per Capita India: GDP per capita in 2025 is estimated at $12,130, indicating rising prosperity and improved living standards for a significant portion of the population. Pakistan: GDP per capita stands at $6,950, considerably lower than India’s. This gap highlights deeper income inequality, lower productivity, and slower economic progress in Pakistan. Takeaway: On average, Indians earn about 70% more than their Pakistani counterparts, underscoring a significant disparity in individual economic well-being. Inflation India: India has managed to keep inflation under control, with the 2025 inflation rate at 4.2% according to the IMF, and retail inflation (CPI) dropping to a six-year low of 3.34% in March 2025. This stability is attributed to tight monetary policy and effective inflation targeting by the Reserve Bank of India. Pakistan: Pakistan’s inflation has been volatile. After surging to 23.4% in 2024 due to currency depreciation and energy price hikes, inflation sharply declined to 0.3% in April 2025, its lowest since 1968. However, forecasts suggest inflation could trend upwards again, reflecting underlying economic vulnerabilities. Takeaway: While India has maintained stable inflation, Pakistan’s inflation environment remains unpredictable, with recent deflation following a period of extreme price surges Conclusion India has decisively outpaced Pakistan in GDP size, growth rate, and per capita income in 2025, maintaining macroeconomic stability and moderate inflation. In contrast, Pakistan continues to grapple with economic stagnation, lower income levels, and inflationary volatility, despite occasional short-term improvements