Overview
- Real GDP grew 8.2% in Q2 FY26, a six-quarter high driven by resilient domestic demand and broad-based gains in industry and services.
- Consumer inflation slid from 4.26% in January to 0.71% in November, while wholesale inflation also cooled, reinforcing price stability.
- The unemployment rate fell to 4.7% in November from 5.2% in October, with government data pointing to improved participation and hiring.
- The Reserve Bank of India raised its FY26 growth forecast to 7.3% and cut the policy repo rate by 25 basis points to 5.25%.
- Merchandise and services exports strengthened through the year, foreign exchange reserves were reported at about $686.2 billion, and officials say India has moved to fourth-largest economy with a projection of $7.3 trillion GDP by 2030.