Digital Payments Surge
The Indian economy witnessed a remarkable surge in digital payments, as the DIGIDHAN mission played a pivotal role. The government reported a remarkable 41%
Compound Annual Growth Rate (CAGR) in digital payments, with transactions reaching ₹22,831 crore in FY25. This growth signifies a shift towards a more digitally empowered economy. Furthermore, the expansion in digital payment infrastructure is set to boost convenience and financial inclusion across the nation. The adoption of digital payments has been increasing in the country. This trend is expected to continue with more consumers and businesses embracing digital transactions.
Real Estate Dynamics
The real estate sector in India demonstrates a mix of trends. Luxury housing sales reached a four-year high, reflecting a preference for high-end properties among Indian buyers. Additionally, capital inflows into the sector surged by 25% to a record $14.3 billion in 2025. This indicates a strong confidence in the Indian real estate market. Simultaneously, office occupancy is anticipated to cross 80% by 2027 in Delhi-NCR, signaling recovery in the commercial real estate segment. These trends, coupled with stable sentiment, suggest a positive outlook.
Banking and Finance
The banking sector is experiencing dynamic changes. Banks may face closures for up to four days as employees demand a five-day work week. Karur Vysya Bank introduced a Capital Gains Account for tax relief, aiming to assist taxpayers. The stock market had been fluctuating, with Bank Nifty sliding for a second straight day, and the PSU Bank Index dropping 1.2%. HDFC Bank's Q3 results showed a net profit increase of 11.4% year-over-year to ₹18,653.75 crore, and ICICI Bank reported a net profit fall of 4% year-over-year to ₹11,317.86 crore. Yes Bank's Q3 results showed a significant surge of 55.4% year-over-year in net profit, reaching ₹952 crore. This highlights the varied performances in the banking sector.
Budget 2026 Expectations
As the country anticipates Budget 2026, multiple expectations have arisen. Experts suggest the government may target capping the fiscal deficit at 4.3% and pushing medium-term debt consolidation. Potential measures include joint tax filing for married couples and the possible extension of home loan and health insurance deductions within the new tax regime. The auto industry seeks EV incentives and clearer GST policies. Tax experts have also suggested higher deductions, and relief on the 30% tax bracket. Discussions on tax clarity and faster dispute resolution are also ongoing. The real estate industry is calling for tax relief and stable policies.
Market & Investments
The stock market experienced volatility, with the Sensex surging 800 points in early trade, then crashing by 1,600 points over three days. Silver prices displayed upward momentum, reaching new global highs. The metal crossed ₹3 lakh, which had investors looking at investment options. Silver ETFs jumped by 8%, and overall market sentiment remained watchful. Market analysts provide various recommendations, and investor behavior suggests a cautious yet optimistic approach. Furthermore, the rising popularity of Flexi-Cap funds highlights investors' evolving preferences.
Industry & Others
Several industries and developments are reshaping the economic landscape. India's core industries grew by 3.7% in December 2025, with cement leading the list. Companies such as IKEA plan to double their investment in India to over ₹20,000 crore in the next five years. Moreover, Coca-Cola plans a $1 billion IPO of its Indian bottling arm, HCCB, in 2026. Metropolitan Exchange is announcing a Sunday trading session on February 1. Real estate in Gurugram attracted ₹86,588 crore in investments in 2025. These instances highlight the dynamism and growth potential present across diverse sectors.
