India’s economy demonstrates resilience with robust Q1FY26 GDP growth amid global uncertainties. July indicators present mixed signals – positive momentum in logistics, infrastructure production, surging EV demand, and record renewable generation, while overall industrial growth and auto demand remain subdued. Above-normal monsoon moderates electricity demand, though spatially skewed rainfall poses risks to Kharif crops at a time when retail inflation hit an 8-year low on lower food prices. Capex by Centre and select states sustains investment momentum alongside ongoing monetary transmission through lower lending rates. Recent GST reforms and monetary policy easing provide growth tailwinds that can help offset emerging tariff headwinds

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