India’s foreign exchange reserves rose by approximately $4.55 billion in the week ending May 9, 2025, pushing the total to about $690.62 billion. This jump was largely due to a sharp increase in gold reserves, which added roughly $4.5 billion, while foreign currency assets inched up by $196 million.
On August 6, 2025, the Reserve Bank of India (RBI) unanimously decided to keep the repo rate unchanged at 5.50%, maintaining a neutral policy stance. This move comes after cumulative cuts totalling 100 basis points so far in 2025, including a surprise 50‑bps cut in June. The pause reflects RBI’s cautious balancing act: supporting economic growth while monitoring evolving trade tensions, especially new U.S. tariffs on Indian exports.
In early August 2025, the U.S. government abruptly imposed a 25% tariff on nearly all goods imported from India, effective August 7. Former President Trump justified the move citing India’s tariff policies, trade imbalance, and continued purchase of Russian oil and defense equipment—a decision framed as “penalties” against those actions.
India’s stock market has recently been rocked by mounting fears of external geopolitical shocks—chief among them, Trump’s announcement of 25% tariffs on Indian exports. The news comes amid already fragile investor sentiment and a steep correction across sectors. Over the past few weeks, Indian equities have lost $248 billion in market capitalization, raising red flags for both domestic investors and foreign institutions.
In the midst of global economic uncertainties, India’s economy continues to display resilience, thanks to proactive government spending and controlled inflation. Recent remarks from policymakers and economic advisors suggest that the Indian growth story remains on track, driven by public sector capex and moderating consumer inflation (CPI).
India’s industrial output rose 1.5% yearonyear in June 2025, improving from a revised 1.2% in May, according to official figures from the Ministry of Statistics and Programme Implementation (MoSPI).
In a significant development that highlights the changing landscape of the Indian capital markets, SEBI recently shared that the number of unique investors has skyrocketed from 4.2 crores in March 2020 (during COVID-19) to a staggering 13 crores as of June 2025. This influx of nearly 9 crore new investors signals a massive democratization of financial participation in India.
The Indian stock market witnessed a sharp sell-off today, with the Sensex plunging 721 points and the Nifty closing below the crucial 24,850 mark.
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