India’s economy in August 2025 is characterized by robust growth, easing inflationary pressures, expanding trade, and effective policy measures. The following highlights capture the current economic scenario, with essential data presented in a consolidated table for clarity.
Key Economic Developments
- Strong Growth, Low Inflation: India is witnessing rapid economic expansion, supported by remarkably subdued inflation. The Consumer Price Index (CPI) inflation rate dropped to 2.10% in June 2025, the lowest since early 2019. Food inflation turned negative at -1.06%, boosting purchasing power and overall sentiment.
- Improved Rural Conditions: Rural India has shown resilience, with 76.6% of households reporting increased consumption. Rural inflation fell to 1.72%, a significant year-over-year reduction of 394 basis points.
- Agricultural Production Surge: Both rice and wheat output have increased notably, strengthening food security and supporting rural incomes.
- Resilient External Sector: Exports reached $210.31 billion in Q1 FY 2025-26, up 5.94% year-on-year, with services exports seeing double-digit growth. Imports also rose, but at a slower pace, narrowing the trade deficit.
- Policy and Investment Support: Key government initiatives under the Foreign Trade Policy 2023 and the “Make in India” campaign have bolstered export competitiveness, particularly for electronics.
- Optimistic Projections: Real GDP expanded by 6.5% in the previous fiscal year, with the country targeting a $7.3 trillion GDP by 2030 to cement its position as the world’s third-largest economy.
- Financial Stability Maintained: The Reserve Bank of India has lowered its repo rate to 5.5%, supporting credit flows and economic activity amid global uncertainties.
Key Data Table
| Aspect | Data/Impact |
|---|---|
| CPI Inflation (June 2025) | 2.10% (lowest since Jan 2019) |
| Food Inflation | -1.06% |
| Rural Consumption | 76.6% households report increase |
| Rural Inflation | 1.72% (down 394 bps YoY) |
| Rice Output | 1,490.74 lakh metric tonnes |
| Wheat Output | 1,175.07 lakh metric tonnes (+42.15 YoY) |
| Q1 FY26 Exports | $210.31 billion (+5.94% YoY) |
| Q1 FY26 Imports | +4.38%; Trade deficit $20.31 billion |
| Services Exports | +10.93% |
| Real GDP Growth (FY25) | 6.5% |
| GDP Target (2030) | $7.3 trillion |
| RBI Repo Rate | Reduced to 5.5% |
| Major Policy Supports | Foreign Trade Policy 2023, Make in India initiative |
Conclusion
India in 2025 presents a favorable macroeconomic environment: inflation is under control, economic growth remains strong, the trade deficit is manageable, and government initiatives are fostering export competitiveness. The proactive stance of the Reserve Bank of India and policy reforms are collectively enhancing financial stability and bolstering India’s ambitions on the global economic stage.
Glottis Limited 
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