“Even amidst these global uncertainties, the current state of the economy provides ground for optimism going forward. The GDP [gross domestic product] growth estimates for 2025-26 indicate that India will remain the fastest growing major economy in the world,” said an article published in the January bulletin.
India will stay the fastest growing major economy in FY26 despite elevated geopolitical risks and policy uncertainty ahead, an article in the latest issue of RBI Bulletin said.
High-frequency indicators for December 2025 suggest continued buoyancy in growth impulses with demand conditions remaining upbeat, it noted.
Headline CPI inflation edged up in December, but was below the lower tolerance level.
High-frequency indicators for December 2025 suggest continued buoyancy in growth impulses with demand conditions remaining upbeat, it noted.
Headline consumer price index-based inflation edged up in December, but remained below the lower tolerance level.
During April-November 2025, foreign direct investment (FDI) remained higher year on year (YoY), both in gross and net terms. Gross inward FDI remained steady in November with Japan, Singapore and the United States accounting for more than 75 per cent of total FDI inflows.
However, net FDI remained negative in November for the third consecutive month, mainly due to high repatriation.
“The flow of financial resources to the commercial sector has increased over the past year, with both non-bank and bank sources contributing to the credit pick-up,” it said.
Non-bank sources-corporate bond issuances, and foreign direct investment to India showed a marked increase during the year so far.
As of December 31, 2025, the total outstanding credit to the commercial sector rose by 15 per cent, with non-bank sources registering a growth of 16.4 per cent.
India has also made significant efforts to diversify and strengthen its exports, aiming to mitigate external sector risks, it added.
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