NIIF’s September Monthly Economic Report on India (MERI) shows sustained momentum in the Indian economy in August despite mixed signals. Core infrastructure activity remains steady with capex maintaining YTD trajectory while digital payments and EV adoption accelerate. However, softening logistics and moderating fiscal revenues suggest near-term headwinds. Monetary transmission gains traction as banks pass through rate cuts, though credit growth trails deposits. Inflation stays benign despite global rally in precious metals with gold hitting records. Above-normal monsoons support positive agricultural outlook, keeping food inflation subdued. The rupee faces broad-based depreciation pressures, but India’s external position provides cushion through robust forex reserves and narrowing current account deficit in Q1FY26.

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