RBI Bulletin Highlights Resilient Indian Economy Amid Global Challenges

The Reserve Bank of India's (RBI) October 2025 Bulletin reveals a resilient Indian economy in the face of global uncertainties and weak external demand. High-frequency indicators point to a revival in both urban and robust rural demand, underscoring economic stability amidst broader challenges.

Headline inflation shows a significant moderation, reaching its lowest since June 2017. The private corporate sector, recovering from the COVID-19 impact, demonstrates strong profitability and balance sheet strength. Corporate sales, after a sharp post-pandemic rebound, have stabilized. Net profit margins improved markedly, highlighting the sector's recovery.

The SME IPO market witnessed a boom with significant participation from retail investors, contributing to a rise in SME listings. While SMEs utilized IPO proceeds effectively, the bulletin cautioned about the mixed post-listing performance of these stocks. Additionally, the report proposed a Data Quality Index to improve financial data reliability, stressing the importance of automated data processes. Meanwhile, the steel sector struggled due to cheap imports, although recent duties offer some protection against dumping.