India’s GDP Growth: Despite global economic uncertainties, high US tariffs and international market turmoil, the Indian economy is growing at a fast pace. Rating agency India Ratings and Research (Ind-Ra) has said in its latest estimate that India’s GDP may grow at the rate of 7.2% in the second quarter of the financial year 2025-26.

The fastest growth will be seen in the second quarter

The rating agency says India’s real gross domestic product (GDP), measured on the base year of 2011-12, will grow at the fastest pace in the last five quarters. The National Statistical Office (NSO) will release official GDP figures on November 28.

Main basis of growth – Private Consumption

Paras Jasrai, Chief Economist and Managing Director of India Ratings and Research, said that increase in private consumption is the main reason for GDP growth. “There has been improvement in the real income of both high and low income groups, which has increased demand.”

Contribution of infrastructure and service sector

According to the agency, the strong position of the infrastructure sector, increase in goods and services exports and strength of the services sector have also boosted the growth in the second quarter. Private consumption is estimated to grow by 8% in the second quarter of the financial year 2025-26. Whereas in the first quarter of last year it was 7% and in the second quarter it was 6.4%.

The agency says that the income tax cut by the government has played an important role in increasing consumption demand. However, if purchase decisions had not been postponed due to the rationalization of GST rates, there would have been an even sharper jump in consumption.

7.5% increase in investment demand

According to the statement, investment demand has also increased at the rate of 7.5% on an annual basis. Stable capital expenditure of the government is playing an important role in maintaining this growth.

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Rbi on indian economy: The Reserve Bank of India (RBI) has decided to maintain the repo rate at 5.5 percent, keeping in mind the existing domestic and global conditions. Governor Sanjay Malhotra announced this at a press conference after a three -day Monetary Policy Committee (MPC) meeting on Wednesday. He informed that the attitude of monetary policy has been kept neutral, which means that the central bank will maintain flexibility in rates according to the changing economic situation. Let us know ten big things of RBI Governor Sanjay Malhotra-

1-RBI, while presenting the economic picture of the country, has increased the estimate of GDP growth from 6.5 percent to 6.8 percent. This is definitely good news for the country, because since the American high tariff, the economic front is facing challenges. While the estimate of retail inflation has been reduced from 3.1 percent to 2.6 percent. This is the second consecutive time when there is no change in the repo rate.

2- Governor Malhotra said that due to the repo rate being stable, there is no possibility of change in interest rates of housing, vehicles and other retail loans at the moment.

3-He also informed that from February to June this year, RBI has already reduced the repo rate by 1 percent, due to which there has been a decrease of 0.58 percent in the borrowing cost of new loans.

The 4-RBI further stated that India’s foreign exchange reserves have reached $ 700.2 billion, which is sufficient for imports of about 11 months. Also, in the second quarter of the current financial year, domestic economic activities are expected to be raised.

5-Governor admitted that challenges remain globally, but better monsoon, GST rate cuts and other policy measures will lead to inflation and economic growth will gain momentum.

6-Central bank believes that low inflation and monetary softening will lead to both investment and consumption.

7-Now it is clear that the RBI is in “Weight and Watch” mode-that is, at the moment the direction and global situation of the economy will be monitored with stable rates.