India's economy has demonstrated significant resilience and growth over the past 24 hours, with key indicators pointing towards a dynamic economic environment. The first quarter (April-June) of fiscal year 2025-26 saw India's Gross Domestic Product (GDP) expand by an impressive 7.8% year-on-year, marking its strongest performance in five quarters. This broad-based growth was fueled by robust consumer demand, increased public consumption, and capital expenditure across primary, secondary, and tertiary sectors.
The World Bank, in its latest South Asia Development Update, has acknowledged India's strong economic fundamentals by upgrading its FY26 (2025-26) GDP growth forecast to 6.5% from an earlier 6.3%. This upward revision is attributed to resilient domestic demand, a strong rural recovery, and the positive impact of Goods and Services Tax (GST) reforms. However, the report also presented a cautious outlook for FY27 (2026-27), lowering the growth forecast to 6.3% from 6.5%, primarily due to the anticipated imposition of a 50% US tariff on Indian goods exports. Despite this, India is projected to remain the world's fastest-growing major economy.
Indian benchmark stock indices, the Sensex and Nifty, continued their upward trajectory for the fourth consecutive trading session on October 7th. The S&P BSE Sensex closed 0.17% higher at 81,926.75 points, while the Nifty 50 gained 0.12% to finish at 25,108.3 points. This bullish sentiment was largely driven by financial stocks, robust loan growth observed in the September quarter, and optimism following the Reserve Bank of India's (RBI) relaxed lending norms. Broader markets, including mid-cap and small-cap indices, also saw advances.
In a significant boost to India's manufacturing and export capabilities, Apple has reported record iPhone exports from the country. In the first half of the current fiscal year (April-September), iPhone exports reached $10 billion (approximately Rs 88,730 crore), marking a substantial 75% increase compared to the previous year. This surge is attributed to expanded production capacity, including two new factories, and strong international demand for Apple products.
The digital payments ecosystem in India continues to evolve rapidly. The National Payments Corporation of India (NPCI) is set to introduce biometric authentication for digital payments starting October 8th, further enhancing security and accessibility. Digital payments are playing a crucial role in India's economic growth, with projections indicating they will exceed $10 billion by 2026 and account for two out of every three payment transactions. The Unified Payments Interface (UPI) system alone crossed the 20-billion transaction mark for the first time in August and has recently expanded its services to Qatar, facilitating easier transactions for the Indian diaspora.
Other notable economic news includes Navratri sales hitting a decade high, boosted by GST reforms and festive spending, and a 20% rise in Mumbai property registrations during Navratri 2025. The RBI has indicated no rush to launch its Central Bank Digital Currency (CBDC) nationwide, although the pilot project is progressing well. While Generative AI has led to a 20% fall in white-collar job listings in South Asia, the demand for AI-related skills is simultaneously rising, offering significantly higher wages.