Pune Offices 2H/2025

ECONOMIC OVERVIEW

The Indian economy remained steady during the first nine months of 2025, charting its course with caution amid a dynamic global landscape characterised by trade uncertainties, shifting geopolitical alignments, and evolving monetary trends. Domestic growth remained largely intact despite some headwinds, on account of sound fundamentals, robust service sector momentum, and policy-driven stability.

GDP expanded 7.8% in the quarter ending June 2025, reaching a five-quarter high and signalling sustained economic momentum. Retail inflation eased to a decadal-low of 0.3% in October 2025, owing to a dip in prices following the historic GST rate cuts. This continued moderation in inflation has given the RBI more space to retain its benchmark lending rate at 5.5%, keeping prices in order and boosting consumption growth.