India’s economy sustains momentum through November, supported by robust logistics activity, steady consumption across vehicles and services, and recovering air travel. Inflation remains benign on softer food and energy prices, though core inflation remains sticky amid elevated precious metal costs. The rupee faces near-term depreciation pressures against major currencies amid muted foreign portfolio flows and a widening current account deficit that pushed Q2 balance of payments into deficit, though November showed improvement with trade deficit. Substantial forex reserves provide a cushion against external pressures. Credit growth picks up with swift monetary transmission, though long-term yields rise marginally.

Click the link to access the Annexure to NIIF’s Monthly Economic Report for December 2025.