pace of indian economy

Recently a good news has come out regarding India's economic growth. The Central Bank report said that India's growth remained stable in November due to urban consumption demand. The Reserve Bank of India (RBI) has said in its latest monthly bulletin that the Indian economy maintained a strong pace in the month of November. The biggest reason for this was the increasing consumption and spending of people in cities. Even after the festivals, the markets remained vibrant, due to which the economic activities did not slow down.

Spending increased in cities, demand strong

According to RBI, the demand for shopping and services in urban areas has become stronger than before. Good activity was seen in car, electronics, everyday goods and service sectors. High-frequency indicators made it clear that the economy remained active in November even after the festival was over. This means that people did not hold back from spending and confidence remained in the market.

Excellent growth in July-September quarter

The Central Bank said that India's economy grew at the rate of 8.2 percent in the July to September quarter. This is considered to be the fastest growth in the last six quarters. RBI says that despite uncertainties regarding global trade, the Indian economy has shown tremendous resilience. The policies of the government and the Reserve Bank had a big contribution in this.

Demand got support from policies

According to RBI, better coordination of fiscal, monetary and regulatory policies strengthened the economy throughout the year. Earlier this year, the government reduced taxes on many consumer products, which supported domestic demand. From soap to small cars, many things became cheaper, due to which the expenses of common people increased.

Growth will be boosted by interest rate cuts

The Reserve Bank cut its main interest rate by a total of 125 basis points during 2025. In December also, there was a reduction of 25 basis points. RBI says that these decisions were taken in view of the soft inflation estimates, so that growth can get further support. Low interest rates made loans cheaper and encouraged investment and consumption.

GDP estimate increased, inflation estimate decreased

The Central Bank has increased the GDP growth estimate for the current financial year from 6.8 percent to 7.3 percent. At the same time, the inflation estimate has been reduced from 2.6 percent to 2 percent. However, the GDP growth estimate for the first half of next year has been reduced slightly to 6.7 to 6.8 percent.

Inflation still under control

Inflation increased to 0.71 percent in November, which was at a record low of 0.25 percent in October. Despite this, it remains far below the RBI target of 4 percent. According to RBI, there has been a slight increase in inflation in both urban and rural areas, because the effect of deflation is ending in rural areas.