The Reserve Bank of India and the government have implemented significant fiscal and monetary steps, including GST rationalisation, tax relief, and a 100 bps repo rate cut, aimed at catalyzing private investment and boosting economic growth. These reforms are expected to create a virtuous cycle of robust manufacturing and services expansion.
India’s macroeconomic outlook is gaining momentum with combined fiscal and monetary policy interventions designed to accelerate private investment and sustainable growth. The Reserve Bank of India (RBI) highlighted in its recent bulletin that measures such as GST reform, income tax relief, and a 100 basis points cut in the repo rate have improved macroeconomic stability and credit flow efficiency.
These efforts come amid signs of strengthened manufacturing and services activity, fueled by festive demand and GST benefits. Inflation has moderated to historic lows, with consumer price inflation around 0.3% in October 2025, further supporting consumption and investment.
The RBI and government continue to focus on removing barriers to private investment by rationalising taxes, easing regulatory frameworks, and improving financial intermediation. The positive outlook is bolstered by ongoing reforms encouraging infrastructure investments, digital economy expansion, and enhanced MSME access to credit.
Key Highlights:
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RBI and Government cut repo rate by 100 bps to stimulate credit and investment
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GST rationalisation and income tax relief bolster consumer spending and business confidence
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Inflation moderates to 0.3%, creating favourable conditions for growth
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Strong expansion in manufacturing and services supported by demand and reform benefits
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Enhanced regulatory and fiscal frameworks facilitate private sector participation
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Continued focus on infrastructure, MSMEs, and digitalisation to sustain growth momentum
Sources: Reserve Bank of India Bulletin, Indian Express, Economic Times