On August 14, 2025, S&P Global upgraded India’s long-term sovereign credit rating from ‘BBB-’ to ‘BBB’, affirming the nation’s economic resilience and sustained fiscal consolidation efforts. The agency also maintained a stable outlook, reflecting confidence in India’s macroeconomic trajectory.
In July 2025, India’s merchandise trade deficit ballooned to $27.35 billion, compared to $18.78 billion in June—a sharp month-on-month increase that caught many economists off guard.
In July 2025, India’s Wholesale Price Index (WPI) dropped 0.58% year-on-year, a sharper contraction than June’s modest 0.13% decline. This marks a continued disinflationary trend at the producer level.
A recent Bank of America Fund Manager Survey reveals that India has dropped to the least preferred Asian stock market in just a few months. In this latest poll, 30% of fund managers said they are underweight on India, making it the lowest-ranked market among Asia-Pacific equities
In July 2025, U.S. headline inflation held steady at 2.7% year-over-year, marginally below forecasts. The monthly CPI rose 0.2%, down from June’s 0.3%.
India’s retail inflation, measured by the Consumer Price Index (CPI), dropped sharply to 1.55% in July 2025, marking its lowest level since June 2017. This decline reflects easing price pressures across major categories, offering relief to consumers and policymakers alike.
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.
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