Regardless of the Reserve Financial institution of India's (RBI) efforts to help progress via price cuts and different liquidity measures, progress momentum throughout key sectors is displaying indicators of weak point.
The report identified that many of the financial indicators knowledge that have been in double digits a 12 months in the past have now slipped into single digits, much like the degrees seen earlier than the COVID-19 pandemic.
It acknowledged, “India's excessive frequency knowledge at the moment are slowing with most of them transferring to single digits”.
The report mentions that India's financial institution credit score progress, which was 16 per cent a 12 months in the past, has now declined to 9 per cent as of June 2025. This sharp fall displays decreased borrowing and weaker demand within the financial system.
Equally, GST collections, which have been rising at 11 per cent a 12 months in the past, have slowed to only 6.2 per cent in June 2025.This decline signifies a slowdown in consumption and enterprise exercise.The report additionally shared that export progress additionally stays subdued, with whole exports (items and companies) displaying solely 6 per cent progress. That is a lot decrease than the double-digit progress witnessed in the course of the FY23 interval.
In response to knowledge, the 12-month transferring common (12mma) of a number of key indicators reveals a constant downward development. Consumption indicators additionally paints a weak image.
Passenger automobile (PV) gross sales have slowed to 2 per cent, in comparison with 7 per cent final 12 months. The true property sector has seen a significant drop, with the worth of property gross sales within the high seven cities declining from 28 per cent progress final 12 months to only 4 per cent now.
Wage progress, as measured by the BSE500 corporations, has halved from 12 per cent to six per cent.
On the trade aspect, progress in eight core sectors is now at 3 per cent, down from 8 per cent a 12 months in the past. Diesel consumption stands at 1 per cent, whereas Medium and Heavy Industrial Car (MHCV) gross sales have declined by 3 per cent.
Items and companies exports are rising at solely 6 per cent. Revenue progress for BSE500 corporations (excluding oil advertising corporations) is now 10 per cent, in comparison with 21 per cent a 12 months in the past.
The report concluded that almost all high-frequency indicators have now moved again to single-digit progress, much like the pre-pandemic years of 2018-19. This development alerts a slowdown in financial exercise, regardless of continued coverage help, and should require additional steps to stimulate progress throughout sectors.
