However, economic growth has been resilient on the back of domestic policy and regulatory support, according to the Reserve Bank of India (RBI). “High-frequency indicators for November suggest that overall economic activity held up. “The Indian economy was not fully immune to the external sector headwinds,” the report said, adding that coordinated fiscal, monetary and regulatory policies, strong domestic demand and benign inflation have supported growth. “Notwithstanding a sharp uptick in real GDP growth in Q2, the nominal GDP registered a four-quarter low growth of 8.7%. The narrowing of the gap between nominal and real GDP growth reflected the moderation in the GDP deflator to a low of 0.5%,” the report said.

Source: Mint December 23, 2025 10:00 UTC