Market Performance
The stock markets experienced a surge on the final trading day of 2025. The Reserve Bank of India (RBI) reported that banks' Non-Performing Assets (NPAs)
were predicted to improve by March 2027. Additionally, the rupee exhibited a rise against the US dollar. The IBC (Insolvency and Bankruptcy Code) saw creditors realize ₹4 lakh crore, according to the RBI. Furthermore, gold and silver prices saw gains in 2025, but experienced a plunge later due to profit-booking and a strong dollar. Factors contributing to the rupee's performance included these factors, alongside other market dynamics, indicating a complex interplay of forces. These trends underscored the financial resilience and the dynamism of the Indian markets.
Policy & Infrastructure
Several policy initiatives and infrastructure projects were announced in 2025. The government approved the Odisha highway widening project. Furthermore, Delhi announced a significant investment of ₹17,000 crore in power infrastructure. The Nashik-Solapur-Akkalkot corridor project also received approval. The focus on infrastructure highlighted the government's commitment to bolstering economic growth and improving connectivity across the country. These projects indicated a push towards comprehensive development, impacting various sectors and supporting long-term economic expansion through investments in key sectors like infrastructure and energy.
RBI's Influence
The Reserve Bank of India (RBI) played a pivotal role in shaping the economic environment. The RBI Governor highlighted the importance of stability in Indian economic growth. The RBI also focused on customer centricity and regulation in the new year. Discussions around stablecoins and their risks to monetary sovereignty were also on the agenda. These actions reflected the RBI's commitment to maintaining financial stability and fostering a conducive environment for sustainable economic growth, alongside addressing the challenges posed by new financial technologies and market dynamics.
Industry Dynamics
Several sectors witnessed notable developments. The Indian tea industry saw a review of 2025 and outlined its outlook for 2026. The steel industry saw safeguard duty imposed on its products to protect the domestic market. In the auto sector, the PLI (Production-Linked Incentive) scheme attracted investments totaling ₹35,657 crore. Furthermore, the honey export Minimum Export Price (MEP) was extended to March 2026. These diverse sector-specific changes demonstrated the varying degrees of success and challenges within the Indian economy. The sugar output in October-December increased by 23.43%.
Market Movements
Various market factors influenced economic activity. Crude oil futures declined due to weak spot demand. The rupee experienced a plunge, with the value depreciating in 2025. The key factors influencing the rupee’s decline and its impact were under scrutiny. The gold and silver markets saw price fluctuations, with gains in 2025 followed by a later decline. These developments reflected the volatility of global markets and the sensitivity of the Indian economy to external factors and domestic trends.
Corporate Developments
Several corporate announcements and initiatives took place. Veegaland Developers filed for a ₹250 crore IPO. Ashika Group planned to launch mutual funds following approval from SEBI. Vodafone Idea secured ₹5,836 crore from the Vodafone Group and also received relief with AGR dues being frozen and payments rescheduled. Furthermore, the Bagmane Group REIT IPO was proposed, valued at ₹4,000 crore. These actions highlighted the business landscape, showcasing new ventures, expansions, and financial strategies adopted by prominent players in various industries. These corporate actions reflected the confidence and dynamism within the Indian business environment.
Consumer & Retail
The retail and consumer sectors also witnessed significant activity. IGL (Indraprastha Gas Limited) reduced piped gas prices in Delhi NCR. Hettich expanded its retail presence in Tamil Nadu. Hyundai India implemented a price hike of 0.6% from January 1. Furthermore, there was news regarding magicpin delivering food on New Year's Eve, signifying a boost in the food delivery market. These developments reflected evolving consumer behaviour and the adaptation of businesses to changing market dynamics, showcasing shifts in consumer spending and the growth of retail channels.
Government & Regulatory
Several government and regulatory actions shaped the economic environment. The government pre-published draft rules for Labour Codes. The ESIC (Employees' State Insurance Corporation) extended the SPREE 2025 scheme deadline. The DGCA (Directorate General of Civil Aviation) raised questions about Air India's Dreamliner snags. Mandatory star ratings for appliances were scheduled to start from January 1. India also imposed a safeguard duty on steel products. These regulatory measures highlighted the government's efforts to enhance consumer protection and support economic efficiency, aiming to boost standards and streamline business operations.
Outlook for 2026
Looking ahead to 2026, several factors and expectations were highlighted. New Regional Directorates & RoCs (Registrars of Companies) were set to be established from February 2026. India was expected to have trade talks with the EAEU (Eurasian Economic Union) in February. Talks with Israel regarding a Free Trade Agreement were anticipated the following month. N. Chandra of the Tata Group outlined his priorities for 2026. These upcoming initiatives suggest an optimistic view for India's future, with a focus on enhancing trade relations, attracting investment, and bolstering domestic industries to foster sustained growth.
