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Economy stays resilient in April-Sept over robust consumption

by Blitz India Media
October 2, 2025
in News
growth
Blitz Bureau

NEW DELHI: India’s economy remained resilient in April-September of FY 2025-26, supported by robust consumption, investments, and Government spending, as inflation stayed below projections, aided by favourable food prices and GST reforms. Well balanced external sector performance, stable liquidity, and healthy financial markets underpinned overall macroeconomic stability, according to an official statement.

In its report following the just-concluded 57th meeting of the Monetary Policy Committee (MPC), the Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.50 per cent with a neutral stance. “It signals a balanced approach that supports economic momentum while ensuring financial stability. The report further highlights resilient domestic demand, supportive financial conditions, and a stable external sector, reflecting a cautiously optimistic outlook for the Indian economy,” according to the Government.

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The Central Bank also revised India’s GDP growth forecast for FY 2025-26 upwards to 6.8 per cent, from earlier estimate of 6.5 per cent. “Domestic growth is performing well due to strong consumption, investments, and Government spending, with supportive factors like a good monsoon, GST 2.0, better credit flow, and rising capacity utilisation sustaining the positive outlook,” according to the official statement. India’s real GDP grew 7.8 per cent in Q1 FY 2025-26, up from 7.4 per cent in the previous quarter, the fastest pace in seven quarters, led by strong investment and consumption. Consumers’ optimism for the year ahead, which is measured by the future expectations index, strengthened further for both urban and rural households, remaining in optimistic territory.

Meanwhile, several global agencies have maintained India’s strong economic growth prospects, highlighting the country’s resilience amid global uncertainties.

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