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Informist, Monday, Dec. 22, 2025

 

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--RBI paper: Data for Nov suggests overall econ activity held up
--RBI paper: Data for Nov suggests demand conditions remained robust
--RBI paper:Focus on macro fundamentals, reforms to help unlock efficiencies
--RBI paper:Focus on macro fundamentals, reforms to help productivity gains
--RBI paper:Focus on fundamentals, reforms to keep econ on high-growth path

 

NEW DELHI – The government's continued focus on macroeconomic fundamentals and economic reforms is the key to keeping the economy on a strong growth trajectory amidst a fast-changing global environment, according to a paper authored by Reserve Bank of India staff. The assessment comes after India's GDP grew at a six-quarter-high pace of 8.2% in Jul-Sept despite global uncertainties.

 

"Continued focus on macroeconomic fundamentals and economic reforms should help unlock efficiencies and productivity gains to firmly keep the economy on the high-growth trajectory amidst a fast-changing global environment," the staff said in the monthly State of the Economy article released Monday. Comments in the article do not represent the views of the central bank.

 

After the country's top export destination--the US--imposed 50% tariff on Indian goods, clouds of uncertainty have loomed over external demand. But domestic consumption demand has been firm, thanks to the direct and indirect tax cuts rolled out by the government. Early in the year, the government announced income-tax relief in the Budget for the financial year 2025–26 (Apr-Mar), increasing the disposable income in the hands of taxpayers, which can then be channelised into the economy in the form of investments. In September, the Goods & Services Tax Council gave relief on indirect taxes, lowering GST on a slew of items. Both measures were meant to spur consumption demand and thereby boost private investment.

 

"High-frequency indicators for November suggest that overall economic activity held up," according to the paper. "Demand conditions remained robust, with indicators of urban demand strengthening further."

 

The observations in the latest State of the Economy article show stability in India's domestic demand conditions. The RBI staff, in their previous month's article, had said the economy was showing signs of a further pick-up in momentum despite lingering headwinds in the external sector, with demand conditions showing signs of improvement due to a revival in urban demand and continued strength in rural demand.

 

Meanwhile, the RBI has raised its GDP growth projection for FY26 to 7.3% from 6.8%. It has also scaled up its growth estimates for the last two quarters of the year, with growth in Oct-Dec now seen at 7.0% against 6.4% projected earlier, and that in Jan-Mar expected at 6.5%, against 6.2?rlier.  End

 

Reported by Krity Ambey

Edited by Rajeev Pai

 

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