According to recent data from the Reserve Bank of India, the country's economy is expected to grow by an impressive 6.5% this year. This figure positions India as the fastest-growing major economy in the world, which is especially noteworthy amid global economic uncertainty.
March 2025 marked a new chapter for India's manufacturing sector, showcasing its fastest growth pace in eight months. This resurgent performance was driven primarily by robust domestic demand, which has effectively offset more than a year of previous contraction. The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 58.1 from February's 56.3, comfortably above the 50.0 threshold that separates growth from decline.
The Reserve Bank of India (RBI) recently made a decision that carries significant implications for the nation's economy. This marks the first reduction in the key interest rate in nearly five years, symbolizing a strategic move toward stimulating economic growth amidst falling inflation expectations.
On the Indian stock exchange, shares of Bajaj Auto $BAJAJHIND.NS surged by more than 4% at the start of Wednesday’s trading session. This robust performance is attributed to sustained domestic demand and promising export prospects, making the company an attractive investment opportunity.
Just a few months ago, India captivated the attention of global fund managers, as its stock market seemed poised to overshadow China in emerging market indices. However, the situation is rapidly changing amid economic cooling and the withdrawal of foreign capital.
