In a world economy marked by volatility, India stands tall as the fastest-growing major economy, according to the Reserve Bank of India (RBI). The central bank’s monthly bulletin highlights how India’s GDP has held firm against international challenges, with projections for FY 2025-26 showing continued strength.
December’s high-frequency data reveals accelerating growth trends and positive demand signals. Inflation rose slightly but remains comfortably below the upper threshold, providing policymakers with room to maneuver.
Export diversification has been a game-changer, reducing vulnerability to external shocks. India is actively negotiating free trade agreements with 14 blocs covering about 50 countries—from the EU and US to GCC nations. Deals sealed with New Zealand and Oman in December mark significant milestones.
The commercial sector has seen a robust influx of funds from diverse financial sources. RBI’s comprehensive banking report for 2024-25 applauds the sector’s solid capitalization, improved asset quality, and impressive earnings.
Major reforms in 2025, including tax streamlining, labor market overhauls via new codes, and financial liberalization, promise to unlock new growth avenues. These initiatives build on India’s inherent strengths.
The RBI advocates for policies that strike a fine balance between fostering innovation, ensuring stability, safeguarding consumers, and maintaining vigilant oversight. This holistic strategy is key to elevating productivity and sustaining India’s economic ascent on the world stage.