RBI's Economic Perspective
In the previous year, the Reserve Bank of India (RBI) emphasized the strength of the Indian economy. The central bank focused on customer centricity and
regulations, setting the tone for a stable financial environment. The RBI also addressed issues such as the rise of unsecured loans, which led to retail slippages, and the risks associated with stablecoins, underlining their impact on monetary sovereignty. The central bank's actions and reports were critical in navigating the economic landscape. Looking ahead, the RBI's focus will likely continue to be on maintaining financial stability and supporting growth, with a keen eye on the changing dynamics of the global economic climate and India's position within it.
Market & Investment Trends
The stock markets experienced an upswing on the last trading day of 2025, which reflected the positive sentiment prevalent in the economy. Simultaneously, there was a surge in Mumbai property registrations, hitting a 14-year high. In the investment landscape, the Bagmane Group REIT IPO was set for a Rs 4,000 crore public issue. Also, the Ashika Group was preparing to launch mutual funds after receiving approval from SEBI. Further, the PLI Auto Scheme attracted investments worth Rs 35,657 crore, underscoring the government's push for manufacturing and industrial growth. The RBI projected that banks' Non-Performing Assets (NPAs) would improve by March 2027. CapitaLand divested data centre stakes for Rs 702 crore.
Infrastructure & Sectoral Growth
Several infrastructure projects were approved and implemented, reflecting a commitment to enhancing connectivity and development. The Odisha highway widening project received the green light, and the Nashik-Solapur-Akkalkot corridor was also approved. Delhi planned to invest Rs 17,000 crore in its power infrastructure. The Indian tea industry underwent a review of 2025, with an outlook set for 2026, pointing to strategic sector plans. Additionally, the Indian government extended the honey export MEP until March 2026, showing continued support for the sector. Hyundai India announced a price hike of 0.6% starting in January 2026. The sugar output in India saw a rise of 23.43% from October to December. SMFCL entered maritime lending with Rs 4,300 crore in loans.
Trade & Regulatory Policies
Trade relations and regulatory policies played a significant role in shaping the economic environment. India was engaged in trade talks with the India-EAEU, anticipated to occur in February. The country imposed a safeguard duty on steel products to protect the domestic steel industry. Also, India and Israel were in talks regarding a Free Trade Agreement (FTA) expected to be finalized next month. Regulatory changes included the introduction of mandatory star ratings for appliances starting in January. The DGCA raised concerns regarding AI's Dreamliner snags and also addressed officer transfers and postings. Furthermore, the extension of low-ash coke import restrictions was a key decision. Additionally, ESIC extended the SPREE 2025 Scheme deadline, facilitating continued support for various programs.
Market Dynamics & Challenges
The economic landscape faced several dynamic shifts. The rupee witnessed a decline in 2025, attributed to various factors that impacted its value and its implications. The gold and silver markets saw gains in 2025, with an outlook set for 2026. However, prices also experienced a plunge due to profit booking and a strong dollar. There were also concerns, with Vodafone Idea facing challenges, including issues related to AGR dues and a decrease in shares. The 6 GHz band was set for mobile services, which received praise from telcos, although broadband providers expressed disappointment. The actions of gig workers caused some disruptions, and Swiggy and Eternal shares saw mixed results.
Technological and Social Impacts
Technology and social factors influenced the economic environment. AI was recognized for transforming blue-collar jobs, according to Anand Mahindra. The introduction of the Land Stack in Chandigarh and Tamil Nadu represented a push for technological integration. The consumer landscape was also affected. IndiGo projected 123 million passengers by 2025, reflecting growth in the aviation sector. Meanwhile, Akasa Air dealt with passenger claims involving fungal infections, presenting challenges in passenger safety. Also, IGL reduced piped gas prices in Delhi NCR.
