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India Corporates’ Profit-to-GDP Ratio Hits 17-Year High at 4.7 % in FY25
India’s corporate profit-to-GDP ratio reached 4.
According to the latest bulletin from the Reserve Bank of India, aggregate profits of Indian firms soared nearly three-fold since the pandemic-hit year (FY21: ~₹2.5 trillion) to about ₹7.1 trillion in FY25. This raises the corporate profit-to-GDP ratio to 4.7 % — the highest in 17 years. Analysts attribute the surge to improved cost efficiencies, technology adoption and recovery in manufacturing and services. While such healthy earnings provide a strong backdrop for equities, concerns remain about sustainability amid inflation and global headwinds.