Indian Economy Maintains Strong Growth Momentum
India is reinforcing its position as a global economic powerhouse, projected to be the fastest-growing major economy in 2025 and 2026, with growth rates of 6.6% and 6.2% respectively. Experts anticipate India surpassing Germany to become the world's third-largest economy within the next 2.5 to 3 years.
Inflation Plummets to Record Lows, Rate Cut Hopes Emerge
A significant economic development is the dramatic fall in India's retail inflation, which plunged to a historic low of 0.25% in October 2025. This sharp decline from 1.44% in September is primarily attributed to substantial reductions in food prices and the full impact of GST rate cuts, particularly in vegetables and pulses. This moderation has fueled expectations for potential repo rate cuts by the Reserve Bank of India (RBI) in its upcoming meetings. Wholesale inflation also saw a dip, recording -1.21% in October, compared to 0.13% in September.
Stock Markets Exhibit Bullish Trend Amidst Corporate Activity
Indian benchmark indices, Sensex and Nifty, have shown a bullish sentiment, closing higher for several consecutive days. Notably, on November 14, a dramatic late-session comeback was observed, with indices gaining significantly, influenced by election trends indicating a decisive win for the BJP-led NDA. Public sector banks and pharmaceutical stocks were key drivers of this rebound.
In corporate news, Pine Labs made a strong market debut, listing at a 9.5% premium and raising approximately ā¹3,900 crore. The Adani Group announced a substantial investment of ā¹63,000 crore in Assam, focusing on a 3,200 MW thermal power plant and two pumped-storage projects. Adani Enterprises also initiated a ā¹25,000 crore rights issue to fund its expansion plans. Furthermore, National Investment Fund II divested most of its 4.7% stake in Ather Energy, through a bulk deal totaling ā¹1,083 crore. November is poised to be a blockbuster month for India's Initial Public Offering (IPO) market, with over ā¹76,000 crore worth of issues expected across various sectors.
Foreign Exchange Reserves See a Dip
India's foreign exchange reserves experienced a decline in early November, falling by $2.7 billion to $687 billion.
Strengthening International Economic Partnerships
India is actively enhancing its economic ties globally. Trade talks between India and Canada have reaffirmed plans to deepen economic cooperation, particularly in critical minerals, clean energy, and resilient supply chains. Bilateral trade between the two nations reached USD 23.66 billion in 2024. European Union industries have identified India as a secure investment destination, with a free trade agreement between India and the EU in its final stages of negotiation, potentially leading to large-scale investments. Additionally, Abu Dhabi is seeking to elevate its economic partnership with India, with non-oil trade exceeding USD 65 billion in 2024.
Untapped Economic Potential in Water Management
A new study by the Council on Energy, Environment and Water (CEEW) suggests that India's treated used water economy could unlock an economic opportunity of up to $35 billion by 2047, alongside the creation of over 1 lakh new jobs.