Indian Economy Shows Strong Growth Momentum, GST Reforms Drive Consumption and Markets Hit Record Highs

November 28, 2025

India's economy continues its robust growth trajectory, with the International Monetary Fund (IMF) projecting a 6.6% expansion for FY26, largely crediting the impact of Goods and Services Tax (GST) reforms. Expectations are high for a strong Q2 FY26 GDP growth, potentially reaching 7.5%. Domestically, GST rationalization has significantly boosted consumption and led to record-low retail inflation. Despite challenges from high US tariffs and a depreciating rupee, the corporate sector remains resilient, and Indian stock markets achieved new lifetime highs on November 27, 2025.