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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Moody Report on India’s Manufacturing: Additional 25 percent tariffs imposed by US President Donald Trump on Indian goods can become a major challenge for India. It can emerge as a significant obstacle in front of India’s self -sufficient mission. US rating agency Moody’s has reported in its forecast that the additional penalty trump imposed on India due to frequent purchases of cheap Russian oil will have a direct impact on the manufacturing competition of the country.

It is worth noting that the announcement of 25 percent tariff on India was announced by the US on 31 July, which has become effective from 7 August. Apart from this, Trump announced 25 percent penalty as an additional fine on August 6, which will be applicable from August 28. However, the routes of possible negotiations between the two countries are still open.

Increased challenge for India

Moody’s said on Friday that India’s ambitious ‘Make in India’ campaign may be affected due to high tariff rates than other Asian countries and the manufacturing sector may be shocked. Its impact will be more visible in particularly high -value electronics sectors.

If the additional tariffs imposed on India are effective due to purchasing oil from Russia, then the self -reliant Bharat Abhiyan, which is aimed at promoting domestic production and reducing foreign dependence, may be adversely affected.

Impact on ‘Make in India’

Under ‘Make in India’, since 2020, the Government of India has been giving exemption and encouragement to promote various sectors. Its positive impact has been seen in the past years. There has been a tremendous boom within the country in drugs and mobile construction, while areas such as textile, semiconductor industry and solar energy are moving relatively slow.

During the financial year 2024-25, India’s trade with the US stood at $ 131.8 billion, which makes it clear that America is a major trade partner of India. India’s exports to the US reached around $ 86.5 billion, which mainly includes textile, electronics, machinery and medicines. Most of these products are part of the incentive schemes given under the PLI scheme of the Government of India.

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