India’s economy continued to demonstrate remarkable resilience in November 2025, fueled largely by private consumption and robust urban demand, according to the latest monthly bulletin released by the Reserve Bank of India (RBI).

Strong Urban Demand Drives Economic Momentum

The RBI highlighted that demand conditions in urban areas remained strong, with high-frequency indicators pointing to sustained economic activity even in the post-festival period of November. Despite global trade uncertainties and economic headwinds, India has maintained impressive growth momentum, reflecting the country’s resilient economic fundamentals.

“Demand conditions remained robust, with indicators of urban demand strengthening further,” the RBI noted in its bulletin. This resilience is particularly noteworthy considering the global slowdown and volatile international trade environment.

Record Growth in the July-September Quarter

India’s economy expanded at an annualized rate of 8.2% in the July-September quarter of 2025, marking the fastest pace of growth in six quarters. The RBI attributed this strong performance to coordinated fiscal, monetary, and regulatory policies that have helped build economic resilience over the past year.

To stimulate domestic consumption, the government implemented tax cuts on hundreds of consumer goods, including essential items like soaps and small automobiles, earlier this year. These measures aimed to support households and maintain spending momentum amid external pressures such as high U.S. tariffs.

RBI Monetary Policy Measures

In addition to fiscal interventions, the RBI adopted expansionary monetary policies to support growth. The central bank reduced its key interest rate by 125 basis points in 2025, including a 25 bps reduction in December, leveraging a benign inflation outlook.

“The decisions were guided by the benign inflation outlook for both headline and core measures, providing space for monetary policy to further support growth momentum,” the RBI stated.

Revised GDP and Inflation Forecasts

Reflecting the ongoing economic strength, the RBI revised its GDP growth forecast for the current fiscal year to 7.3%, up from an earlier estimate of 6.8%. At the same time, the central bank lowered its inflation projection to 2%, signaling price stability.

However, for the first half of the next fiscal year, GDP growth is projected to moderate to 6.7%-6.8%, reflecting the anticipated moderation in global and domestic demand pressures.

India’s inflation in November edged higher to 0.71%, up from a record low of 0.25% in October, yet remained well below the RBI’s target of 4% ± 2%. Notably, inflation rose in both urban and rural areas, with rural inflation emerging from deflationary levels.

Outlook: Sustaining Growth Amid Global Uncertainties

Overall, India’s economy continues to show remarkable resilience, driven by strong urban consumption, supportive fiscal policies, and proactive central bank measures. Analysts expect that sustained private demand and stable inflation will continue to support India’s growth trajectory, even as global economic uncertainties persist.

The RBI’s latest report reinforces the narrative that India is poised to remain a key engine of global economic growth, leveraging both domestic demand and strategic policy interventions to navigate a complex global landscape.