India’s economy is buzzing with developments as the G20 launches a startup collaboration initiative, GST collections hit a record high, and industrial production surges. These milestones reflect the dynamic shifts shaping the nation’s economic landscape.
TICE brings you the top economic news of the day, keeping you updated on the stories driving India’s growth. Here’s a detailed roundup of the key highlights and their implications for businesses and the economy.
India’s economic growth is expected to slow in the second quarter of FY25, primarily due to a slump in the manufacturing sector. The Reserve Bank of India (RBI) has revised its GDP forecast for the fiscal year to 6.8% in its October bulletin, down from the 7% projected earlier. In the first quarter, the economy recorded a 6.7% growth. The Central Statistical Office will release official GDP data on November 29, shedding further light on the economic trajectory.
In a unique initiative, the Reserve Bank of India (RBI) launched financial literacy booklets in the Santali (Ol Chiki) language. Released by Odisha’s Chief Minister during the Bali Jatra festival, these booklets aim to enhance financial awareness among tribal communities. This initiative is part of the RBI’s broader effort to commemorate 90 years of its operations and includes engaging activities such as student quizzes.
Several public sector banks, including Bank of India, Punjab & Sind Bank, Canara Bank, and Indian Bank, are set to launch a new credit risk assessment model for micro, small, and medium enterprises (MSMEs). This model will streamline loan processing for amounts ranging from ₹25 lakh to ₹5 crore. The initiative aligns with the finance ministry’s push to enhance credit access for MSMEs and is expected to go live on November 25.
The retail credit market is encountering challenges as rising delinquencies surface in certain segments, especially among informal self-employed borrowers. Mahesh Misra, CEO of the Indian Mortgage Guarantee Company, highlights that borrowers often rely on personal loans to meet home purchase requirements, leading to higher costs. The reluctance to increase loan-to-value ratios beyond 80% is a contributing factor.
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The Central Board of Direct Taxes (CBDT) reported recovering ₹35,500 crore in outstanding taxes between April and September 2024. This includes ₹23,000 crore from corporate taxes and ₹12,500 crore from personal income taxes. The robust collection reflects effective measures to boost compliance and enforcement.
Despite recovery in rural markets, urban demand has weakened, posing a challenge for the fast-moving consumer goods (FMCG) sector. According to NielsenIQ data, FMCG value growth stood at 5.7% in Q2FY25, while volume growth was 4.1%. Rural demand outpaced urban markets, growing at 6% compared to the latter’s modest 2.8% growth.
The production-linked incentive (PLI) scheme for smartphones has proven highly beneficial, generating 19 times the value of incentives disbursed. Between FY21 and FY24, the government disbursed ₹5,800 crore in incentives, while earning ₹1.10 lakh crore in revenue. The industry produced goods worth ₹12.55 lakh crore during this period, reflecting the scheme’s success in boosting manufacturing.
Retail automobile sales saw a 12% year-on-year increase during the festive season, with two-wheelers leading the demand surge. The Federation of Automobile Dealers Associations (FADA) reported sales of 4.29 million vehicles over 42 days, compared to 3.84 million last year. The growth was fueled by strong rural demand and attractive discounts.
Indian businesses are increasingly investing in generative artificial intelligence (GenAI), transitioning from experimental phases to scalable applications. A study by NTT DATA reveals that firms are focusing on using GenAI to enhance business efficiency, compliance, and safety. Globally, 99% of organizations also plan to increase GenAI investments.
India’s automotive sector is poised to leapfrog into the “smartphone era” with 5G-enabled and AI-driven vehicles by 2025. The Techarc India Connected Consumer Report 2025 highlights growing consumer interest in innovative features and enhanced value propositions in automobiles. The shift to 5G connectivity bypasses 4G, signaling a transformative phase for the industry.
Retail tomato prices dropped by 22.4% month-on-month in November due to improved supplies. The Consumer Affairs Ministry reported that average retail prices fell to ₹52.35 per kg on November 14, while wholesale prices in Delhi’s Azadpur mandi saw a sharper decline of nearly 50%.
The Indian Railways is planning to set up exclusive container rail terminals at 23 locations to facilitate export-import (exim) cargo movement. These terminals will exclude bulk cargo like coal and iron ore, focusing on containerized shipments. The initiative is expected to attract private sector participation through favorable financial terms.
The Insolvency and Bankruptcy Board of India (IBBI) is working on reforms to address challenges in the real estate sector. Proposed changes aim to ensure timely possession for homebuyers, improve claim valuation, and enhance transparency. These reforms promise significant relief for both homebuyers and lenders.
New entrants in the ₹55,000-crore telecom tower industry are leveraging innovative and cost-efficient solutions to compete with established players. Companies like SAR Televentures and Suyog Telematics are focusing on deeper geographies to support 5G rollouts, banking on expansion opportunities with Vodafone Idea and BSNL.
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The Telangana government has sanctioned ₹205 crore for acquiring over 280 acres of land to develop Warangal’s Mamnoor Airport. The Airports Authority of India (AAI) plans to operationalize the airport for A-320 aircraft. The development aligns with the state’s efforts to enhance regional connectivity.
India’s smartphone exports reached a record $2 billion in October, marking a significant milestone in the country’s global trade footprint. The Indian Cellular and Electronics Association (ICEA) attributes this achievement to the nation’s growing role in global supply chains, with continued momentum expected in the coming months.
The Indian economy continues to showcase resilience and innovation across sectors, from manufacturing and finance to technology and agriculture. These developments highlight both challenges and opportunities, setting the stage for further growth and transformation.
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