The report said the rationalisation of GST rates has begun to reflect across the economy, lifting consumption indicators and supporting both urban and rural demand.
It noted that e-way bill generation rose 14.4 per cent year-on-year during September and October 2025, while cumulative GST collections grew 9 per cent in April–October 2025, indicating a resilient revenue base backed by firm consumption and improved compliance.
Retail inflation eased to a record low of 0.25 per cent in October 2025, aided by GST cuts, a favourable base and a sharp decline in food prices, especially vegetables.
Corporate performance remained steady in Q2 FY26. Net sales grew 6.1 per cent year-on-year and net profits rose 12.3 per cent. “Profit margins have continued to strengthen, with PAT as a share of total income reaching an estimated 11.1 per cent—among the highest in recent years. Overall, the data suggest that corporate balance sheets remain resilient, supported by stable earnings,” the review said.
The agriculture outlook has improved with the Rabi season beginning on a strong note. Total Rabi sowing increased 14.8 per cent year-on-year, driven by a 19.9 per cent rise in wheat sowing and an 8.9 per cent increase in gram acreage. This was supported by healthy reservoir levels and favourable soil moisture. Kharif procurement reached 170.9 lakh tonnes as of November 20.The external sector benefitted from record services exports. While merchandise exports moderated in October due to higher gold and silver imports, services exports touched an all-time high of USD 38.5 billion, covering 48 per cent of the merchandise trade deficit. For April–October FY26, total exports grew 4.8 per cent, supported by 9.7 per cent growth in services.“The external environment remains characterised by elevated trade policy uncertainty, though global pressures have moderated relative to earlier peaks,” the report observed.
India’s foreign exchange reserves stood at USD 687 billion, providing an 11-month import cover. The rupee moved in a narrow 87.8–88.8 per USD range in October, reflecting market stability.
Equity markets posted a strong October, with the MSCI India Index rising 4.2 per cent. Domestic Institutional Investors (DIIs) continued to play a stabilising role, with their share rising to 18.3 per cent—surpassing Foreign Institutional Investors (FIIs) for the first time in 13 years.
Bank credit growth improved to 10.4 per cent year-on-year as of September. MSME lending remained strong, with overall MSME credit up 19.7 per cent and micro and small enterprise credit rising 22 per cent. Loans against jewellery surged 114.9 per cent due to rising gold prices.
Labour force participation increased marginally to 55.1 per cent, while unemployment fell to 5.2 per cent in Q2 FY26. CMIE data showed seasonal shifts increased farm employment and caused a temporary rise in rural unemployment in October.
The hiring outlook remains positive. Hiring intent for 2026 is projected at 11 per cent, with strong demand for AI/ML roles. Employability rose to 56.4 per cent, with women surpassing men for the first time.
The review said India enters the second half of FY26 on a stable and resilient growth path supported by easing inflation, public capital expenditure, healthy financial markets and firm demand across rural and urban areas. However, it cautioned that global uncertainties, trade policy shifts, geopolitical risks and financial volatility require sustained policy vigilance.
(With inputs from ANI)