Indian Economy Faces Moderation in November, Rupee Hits Record Low Amid Trade Tensions

November 22, 2025

India's private sector activity experienced a six-month low in November, primarily due to a significant slowdown in manufacturing, despite a slight uptick in services. The HSBC Flash India Composite Output Index dropped to 59.9. Inflationary pressures continued to ease, with consumer inflation reaching a record low of 0.25%, fueling expectations for a repo rate cut by the RBI. However, the Indian rupee depreciated to a record low of 89.48 against the US dollar, influenced by waning investor confidence and US-India trade tensions. Union Minister Piyush Goyal maintained a positive long-term outlook for India's economic growth, while the nation's foreign exchange reserves saw a notable increase. Key developments also include the implementation of new labor codes, the unveiling of the National Industrial Classification (NIC) 2025, and initiatives to boost bilateral trade with Israel and Afghanistan.