New Delhi, Nov 27 (UNI) The Real Gross Domestic Product (GDP) growth for Q2 FY26 in the range of 7-7.5 per cent, indicating continued strength in underlying economic activity, said the monthly economic review released by the Ministry of Finance on Thursday.
Macroeconomic developments in October indicate a stable and resilient domestic economy, supported by easing price pressures, firm consumption trends and early impact of recent policy implementations.
The report said that rationalisation of GST rates has provided a measurable boost to consumption, as reflected in the strengthening of high-frequency indicators, including higher e-way bill generation, record festive-season automobile sales, robust UPI transaction values and a notable rise in tractor sales.
These developments point to broad-based improvements in demand conditions across both urban and rural segments.
The Finance Ministry said, “Headline inflation eased to an all-time low of 0.25 per cent in October, driven by the transmission of GST cuts, a favourable base effect and pronounced declines in food prices.”
“Core inflation remained stable, while the timely progress of Rabi sowing-supported by adequate soil moisture and healthy reservoir levels continues to reinforce a benign food supply outlook,” it added.
The external environment remains characterised by elevated trade policy uncertainty, though global pressures have moderated relative to earlier peaks.
India’s merchandise exports softened in October due to a surge in gold and silver imports, while services exports achieved their highest-ever monthly level, providing a substantial buffer to merchandise trade deficit.
“Capital flows were mixed, with strong FDI inflows offsetting subdued portfolio activity; India’s foreign exchange reserves of USD 687 billion to provide a substantial buffer against external shocks”, the report said.
In October, labour market indicators pointed to seasonal moderation, largely driven by dynamics in the rural sector during the Kharif-rabi transition. Importantly, forward-looking assessments of hiring intent and employability, especially in technology-intensive roles, remain positive.
