2025 proved to be a turning point for the global economy. As inflationary pressure subsided, central banks had an opportunity to support growth.

In this video we understand why RBI and US Federal Reserve cut interest rates in 2025 and what effect it had on the economy. Taking advantage of low inflation, RBI in India cut the repo rate by a total of 125 basis points, which made borrowing cheaper and boosted consumption.

Inflation fell to a record low 0.25% in October 2025, giving space for aggressive monetary easing. At the same time, due to labor market slowdown in America, the Federal Reserve started rate cuts again in the second half of 2025. The impact of these policies was clearly visible on loans, investments and overall economic activity.

India Retail Inflation Rises: Retail inflation in the country has registered a slight increase and has reached 0.71 percent, whereas in October it was only 0.25 percent, which was the lowest level till date. This increase was mainly due to increased prices of daily essential commodities like vegetables, meat-fish, eggs, fuel and electricity.

According to the National Statistical Office (NSO), a decline of 3.91 percent was recorded in food prices in November 2025, which was 5.02 percent in October. This means that the pace of decline in prices has slowed down significantly. This indicates that pressure is increasing in the food sector.

Increased pressure on food items

There has been a sharp rise in the prices of vegetables and eggs, while the continuous increase in the prices of meat, fish and spices is putting additional burden on the pockets of consumers. Fuel and electricity inflation has also increased from 1.98% to 2.32%, which impacts transportation and production costs and ultimately affects the prices of all commodities.

There was a record decline in October due to cuts in GST in some sectors, but now when factors like festive demand, supply-chain costs and increased tariffs on imported goods are coming to the fore, it is natural for retail inflation to increase gradually. The challenge for the government is to keep inflation within a comfortable range by controlling food prices and fuel costs.

Demand increased during festive season

The burden on consumers has increased due to rising inflation in both rural and urban areas. Even though the Reserve Bank is estimating retail inflation at 2% in the current financial year, achieving this target looks challenging due to the weakness of the rupee, rising import costs and global geopolitical conditions.

The rupee crossing 90 has further complicated the situation for the government and economic managers as it creates additional pressure on all three fronts – inflation, trade deficit and financial stability.

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Russian President Vladimir Putin is coming to India for two days on Thursday (December 4, 2025). Not just India, the entire world is talking about Putin’s visit. Three months ago, when Prime Minister Narendra Modi and Putin met in Tianjin, China, the whole world talked about their friendship. Both had reached China for the SCO summit.

The Russian President is coming to India at a time when India has to pay heavy tariffs to buy oil from Russia. Despite this, the whole world has been shocked to see India’s GDP growth. Only last month, the Finance Ministry said that India’s GDP growth rate was recorded at 8.2 percent in the third quarter from July to September. The whole world is surprised to see this figure because it was being estimated that India’s economy could be affected due to the huge tariffs imposed by America.

Now if we talk about the economies of both the countries, Russia’s economy is half that of India. This year, India has become the fourth largest economy in the world, leaving behind Japan. India’s total GDP is 4.3 trillion dollars, while Russia’s GDP is 2.54 trillion dollars. Russia ranks ninth among the world’s largest economies.

US President Donald Trump has imposed a penalty of 25 percent tariff on India for purchasing oil from Russia, whereas he had already increased the tariff by 25 percent. He says that India imposes higher tariff than America, in return they have imposed 25 percent tariff and they have imposed additional 25 percent tariff as a penalty for buying Russian oil.

Putin will reach Delhi in the evening and will meet Prime Minister Modi at his residence directly from the airport. PM Modi has also organized a private dinner for him. Many agreements related to energy, trade and defense are likely to be signed in this meeting. Apart from this, many international level issues can also be discussed, due to which US President Donald Trump and the leaders of Pakistan, China and Ukraine are paying special attention to the meeting.

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India’s Industrial Production: Maintaining GDP growth and creating new employment opportunities has become a big challenge for the countries facing America’s high tariffs. At a time when the Indian Rupee is continuously weakening against the Dollar and fluctuations are being seen in the stock market, a positive news has emerged from the economic front.

The country’s industrial production increased by 4 percent in September. This growth has been recorded mainly due to the better performance of the manufacturing sector. According to official data from the National Statistical Office (NSO) released on Tuesday, industrial production, measured in terms of the Index of Industrial Production (IIP), grew by 3.2 percent in September 2024.

Performance of manufacturing and other sectors

NSO has revised the provisional estimate of industrial production growth for August 2025 from 4 percent to 4.1 percent. According to the new data, the production of the manufacturing sector increased by 4.8 percent in September, whereas it increased by 4 percent a year ago i.e. in September 2024. However, there was a decline of 0.4 percent in the mining sector, whereas there was a marginal growth of 0.2 percent a year ago.

increase in power generation

Electricity generation recorded an increase of 3.1 percent in September 2025, whereas in the same period last year this increase was only 0.5 percent. The country’s industrial production has increased by 3 percent during the first half (April-September) of the financial year 2025-26, while in the first half of 2024-25 the growth was 4.1 percent.

On the other hand, Commerce and Industry Minister Piyush Goyal will hold an important meeting with the exporters’ community here on Wednesday. In this meeting, measures to further increase the country’s exports will be discussed. The country’s exports have increased by 6.74 percent to reach 36.38 billion dollars in September. This meeting is taking place at a time when India’s exports to its largest trading partner America declined by about 12 percent to $5.46 billion last month.

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Also read: Who is former Justice Ranjana Prakash Desai, who became the Chairman of the Eighth Pay Commission?

Industry organization Bharatiya Udyog Vyapar Mandal (BUVM) has estimated that there will be a business of more than Rs 7 lakh crore across the country in the current festive and upcoming wedding season.

National President of the Board, Babulal Gupta said that with the beginning of the festive season, tremendous enthusiasm has returned to the markets of the country and a total business of Rs 7.58 lakh crore is expected in various sectors. This estimate is based on the market survey conducted by the board across the country, the report of which was released on Tuesday.

Boost to economy from festive season

Babulal Gupta said, “Increasing purchasing power of consumers, increasing interest towards local products and improvement in GST system have given new strength to retail and wholesale trade.” He said that there is a tremendous jump in sales in all sectors like vehicles, real estate, grocery, jewellery, electronics, traditional decorations, apparel and dry fruits. Especially in small and medium cities, the demand for products of domestic manufacturers has increased rapidly.

The demand for traditional handmade items like earthen lamps and idols has also increased due to festive traditions. At the same time, sales have been strong in rural markets also due to increase in income after harvest and marriage expenses. Gupta said that the sale of firecrackers is also making an important contribution to the overall business. Sales in this sector are estimated to be more than Rs 10,000 crore in Uttar Pradesh alone.

Boom from real estate to automobile

He further said that the automobile sector — which includes cars, two-wheelers and e-rickshaws — leads the way with estimated sales of about Rs 1.30 lakh crore. After this, real estate and construction materials sector is in second place with a turnover of Rs 1.20 lakh crore.

The turnover of essential commodities is estimated to be around Rs 1 lakh crore. Gupta said that from metros like Mumbai and Chennai to small towns in North India, shopkeepers are seeing a significant increase in demand for fireworks and festive goods. The festive season has started with Navratri and this momentum is expected to continue further due to the wedding season after Diwali.

The special committee of the board has prepared this estimate on the basis of data received from major business centers like Delhi, Mumbai, Chennai, Ahmedabad, Bengaluru, Hyderabad, Jaipur, Chandigarh, Kanpur, Patna, Indore, Raipur, Ranchi, Haridwar, Tripura and Cuttack. Traders in these cities helped create national estimates by sharing local sales trends.

The Royal Swedish Academy of Sciences has awarded the Sveriges Riksbank Economic Sciences Prize in Memory of Alfred Nobel for 2025 to Joel Mokyr (US), Peter Howitt (US), and Philip Aghion (UK). All three have been honored for ‘explaining innovation-based economic growth’. Joel is associated with Northwestern University of America, Philip is associated with The London School of Economic and Political Science in England and Peter is associated with Brown University of America.

Prize money will be distributed
According to the Nobel Prize Organization, half of the prize will be awarded to Joel Mokyr for identifying the conditions necessary for sustainable development through technological progress and the other half jointly to Philippe Aghion and Peter Howitt for the theory of sustainable development through creative destruction. Mokyr used historical sources as a means to uncover the reasons why sustainable development has become the new normal.

Aghion and Howitt also studied the mechanisms behind continued evolution. In a 1992 article, he created a mathematical model called creative destruction and explained that when a new and improved product enters the market, companies selling the old product stand at a loss. New products and methods of production continue to replace old methods, and this process never ends. This is the basis for sustained economic growth, which improves the quality of life, health and standards of living of people around the world.

Who gets this award?
This award is given to those economists whose research has made a major contribution to understanding the economy and solving its problems. It is called the Nobel Prize in Economics, but it was not technically one of the original five prizes in Nobel’s will, but was established by the Swedish Central Bank in 1969. It selects the winners of the Royal Swedish Academy of Sciences Awards.

Ever since US President Donald Trump came to power for the second time, his policies are being discussed all over the world. Leaders around the world have also given their reaction regarding his tariff policy. Now the citizens there are also troubled by the new policy. In fact, Indian-origin Nobel Prize winning economists Abhijit Banerjee and Esther Duflo may leave the US soon.

Nobel laureate will join this university of Switzerland

It is being said that Trump’s strict policies are behind his decision. Both of them have decided to make their new home in Switzerland. The Nobel laureate is now going to join Zurich University of Switzerland. The university issued a statement in this regard on Friday. However, the real reason for leaving America has not been revealed yet.

What did Zurich University say in its statement?

Zurich University said in its statement that Abhijit Banerjee and Esther Duflo are currently working at MIT. He will join the Economics Faculty of the University from July 2026. Regarding this, University Chief Michael Shapman said that we are happy to announce that two of the world’s most influential economists are coming to UZH.