“The Indian economy showed signs of a further pick up in momentum, despite lingering external sector headwinds. Demand conditions exhibited signs of improvement with the revival of urban demand and continued strength in rural demand,” the article on the state of the economy noted.
Manufacturing activity showed further resilience on the back of strong consumption trends.
Rural demand ‘steered overall demand’, helped by favourable monsoon progress, firm agricultural activity and the demand boost from the GST rate cuts, which helped sustain purchasing power across non-urban markets.
Digital payments moderated in both value and volume in October 2025. Despite this, the central bank indicator noted that adoption trends remained broadly positive.
Recent data shows rising digital transactions across regions and merchant categories that have historically been dominated by cash payments.
Headline inflation strengthened the broader economic outlook, plunging to its lowest level in the current consumer price index series. Retail inflation fell to 0.3 per cent in October from 1.4 per cent in September, the article noted.
Core inflation—excluding food and fuel—moderated to 4.3 per cent in October from 4.4 per cent in September, driven by softer price increases in clothing and footwear, recreation and amusement, health, and transport and communication.
ALCHEMPro News Desk (DS)
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