Indian Economy Navigates Inflation Ease, Trade Expansion, and Growth Debates

October 20, 2025

The Indian economy is currently experiencing a period of easing retail inflation, driven by lower food prices and the impact of recent GST reforms, which are also bolstering consumption. Discussions are underway regarding potential monetary policy easing with a possible RBI rate cut later this year. On the trade front, India is actively diversifying its export markets and engaging in crucial talks to expand trade agreements with ASEAN and Brazil, while a weaker rupee is enhancing export competitiveness. However, concerns persist about declining private capital formation and the long-term growth trajectory, with some economists highlighting the challenge of moving beyond a 'lower-middle income trap'.