The Reserve Bank of India (RBI), in its "State of the Economy" report, has warned that India’s economy is growing faster, even though there are still problems and uncertainties in the global economy.
Saloni Kumari | Nov 25, 2025 |
RBI’s State of the Economy Report Signals Strong Growth Amid Global Uncertainty
The Reserve Bank of India (RBI), in its “State of the Economy” report, has warned that India’s economy is growing faster, even though there are still problems and uncertainties in the global economy. The central bank mentioned that in October, robust growth was seen in both manufacturing and service industries, thanks to increased demand during the festive season and the positive effects of GST (Goods and Services Tax) reforms.
The Reserve Bank of India (RBI) further added that inflation has dropped to a very low level and is much lower than the target they had set.
In its “State of the Economy” report issued on November 24, 2025, RBI said, “Financial conditions remained benign, and the flow of financial resources to the commercial sector increased significantly from a year ago.”
The GST (Goods and Services Tax) reforms discussed in the GST 56th council meeting came into effect from September 22, 2025, and made a historic shift in the indirect taxation of the nation by replacing the country’s existing four-slab system with just two, i.e., 5% and 18%, and a special tax slab of 40% for sin goods, like tobacco, cigarettes, alcohol, etc. This GST rationalisation in 2025 was aimed at simplifying the slabs, boosting the consumption and revising the rates of GST.
Private Corporate Business in Q2
The Reserve Bank of India (RBI) released data on how private companies performed in the second quarter of 2025-26.
According to the RBI, total sales of listed private non-financial companies grew by 8% compared to the same period last year, which is better than the 5.5% growth seen in the first quarter.
Sales of manufacturing companies increased by 8.5%, mainly because of strong performance in sectors like automobiles, food products, electrical machinery, and chemicals.
The sales of Information Technology (IT) services have grown from 6% to 7.8%. A robust growth has been seen in non-IT services, raised upto 10.6%, driven by wholesale and retail trade.
Manufacturing companies’ ICR dropped to 8.6, meaning they now have less room or safety margin to comfortably pay their interest on loans.
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