GST rationalisation, festival-related spending supported domestic demand during Oct-Nov
The Reserve Bank of India's bulletin released on Monday said that the GST rationalisation and festival-related spending supported domestic demand during October and November.
"High-frequency indicators suggest that domestic economic activity is holding up in Q3, although there are some emerging signs of weakness in few leading indicators. GST rationalisation and festival-related spending supported domestic demand during October-November. Rural demand continues to be robust while urban demand is recovering steadily," according to the RBI bulletin.
India's economy expanded by 8.2% in the July-September quarter, its fastest pace in six quarters, showing "remarkable resillience" amidst persistent global trade uncertainties, the central bank said.
"Coordinated fiscal, monetary and regulatory policies have helped to build resilience over the year," the RBI said.
Earlier this year, India cut taxes on hundreds of consumer items ranging from soaps to small cars to spur domestic demand in the face of economic headwinds from punishing U.S. tariffs.
Additionally, the central bank cut its key interest rate by a total of 125 basis points in 2025, including a 25 bps reduction in December.
