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Dear Readers,

Introduction: Globally, especially in India, Diwali festival is being celebrated with devotion worshipping Maa Laxmi– the grantor of wealth and prosperity and Lord Ganesha – the remover of difficulty and obstruction on the path to prosperity. The festive enthusiasm, revelry, bonhomie and the exchange of gifts provide a spurt to the economy making the season a memorable one.

India will celebrate Guru Nanak Jayanti in the month of November to honour his teachings of peace, humility and service to humanity. We will

be celebrating Children’s Day also this month, which is Chacha Nehru’s birthday on 14th of November, the first Prime Minister of India promoting child education and welfare. These occasions remind us to cherish kindness and simple joys that unite us all.

Indian Economy: Finance Minister Nirmala Sitharaman said the Indian economy is resilient due to domestic demand and is ready to absorb global shocks. She said that we cannot be undecisive and India, along with other developing Nations, must be an active participant in shaping global outcomes.

World Bank has raised India GDP growth rate for FY26 to 6.5% from the earlier estimate of 6.3%. Forecast for FY27 is 6.3%. India is expected to remain the world’s fastest growing major economy. IMF revised India’s GDP growth forecast for the current fiscal to 6.6% compared with the earlier estimate of 6.4% on the back of strong growth offsetting the impact of tariffs imposed by the US.

RBI governor Sanjay Malhotra said that despite global turbulence and geo political shocks India has been able to stand out as a rare anchor of stability in a volatile world.

Donald Trump, President of the US has labelled India as a dead economy, perhaps to get some sufficient compensation and trade negotiations. On the contrary, India at present is the world’s most vibrant economy and will grow at 6.5% as forecasted while US annual growth rate is projected at 1.9%. In FY25 India’s agri and processed food products exports were about USD 25.14 bn. India has been the largest exporter of rice for over a decade now and is currently having a share of over 40% in global trade.

Finance Minister Sitharaman emphasized on the need for economic development of the rural areas through rural banks and appealed to those banksto design products catering to the needs of the rural communities.

India’s government debt is projected to decline from the current 81% of GDP to 71% of GDP by FY35 according to a report by CareEdge Ratings. Although the centre’s continued emphasis on fiscal consolidation is there, high interest payment burden poses a challenge.

Despite strong domestic performance, India’s export sector faces challenges due to the 50% US tariff on a significant portion of its goods exports. The country’s export to the US fell to USD 5.5 bn in September 2025 from USD 8.8 bn recorded in May 2025.

Retail inflation declined to an eight-year low of 1.54% in September 2025 primarily due to declining food prices. Core inflation rose to 4.5% influenced by higher gold prices, metal prices and housing costs.

Moody’s affirmed India’s Baa3 rating with a stable outlook, reflecting confidence in the country’s economic fundamentals and fiscal policies. Ministry of Finance has projected that India’s gross FDI inflows may exceed USD 100 bn in FY26.

Nitin Gadkari, Union Minister of Road Transport and Highways, has reiterated multiple times that achieving a USD 5 trillion Indian economy is both realistic and essential, provided infrastructure and logistics reforms stay on track. His emphasis on improved roads and highways connectivity reduces travel time, logistic costs, improves safety, enhances trade & commerce.Lower logistics cost makes Indian goods more competitive globally.

Cover Story: Tea industry at present is passing through a major crisis. The country exported 255 million kg of tea in 2024. India’s tea production for the financial year 2023 – 24 was approximately 1,382 million kg, a slight increase from the previous year’s production of 1,375 million kg. Tea production in 2024 – 25 is projected to be approximately 1,390 million kg. The production has mainly fallen due to major climatic changes like heat waves and floods.

Output during September 2025 stood at 159.92 million kg down from the same period last year’s 169.93 million kg. In North India, the largest producing region, total production fell 5.61 % year – on – year during September 2025to 138.65 million kg as per the latest data from the Tea Board. The association attributes this decline to average rise in daily temperature and reduced rainfall affecting the quality as well. Production of dust tea declined by almost 7% in Assam and 9.5% in Dooars and Terai region of West Bengal.

Producers are unable to meet their cost. Every  country except India now has introduced a minimum fair price to support the sector. The Tea Board of India has also requested to introduce a minimum fair price to save the industry.

India exports tea to more than 25 countries across the world. Russia, Iran, UAE, UK, USA, Germany and China are some major export markets for Indian tea.

The tea industry is a huge employment generator for India. It employs directly about 1.2 million people, with women making up about 58% of the workforce. In Assam 1 out of every 5 persons is directly involved with the tea industry.

Tea industry is also a huge foreign exchange earner and contributes significantly to the country’s growth.

Global Economy: The IMF in its October update raised its forecast for global growth in 2025 to 3.2% from its July projection of 3.0%.This unexpected resilience is most likely on account of front – loading of trade and investments to bypass the impact of the US tariffs against various Nations. However, this effect is likely to fade if US does not change its stance on the issue of tariffs.

Conclusion: It is evident that the Indian economy remains a ray of hope in the world economy.

Driven by robust domestic demand, a vibrant services sector, and significant infrastructure investment, India has maintained a steady course of growth despite global uncertainty, slow trade, and unequal recoveries across major economies. Even if there are still obstacles to overcome,

such as inflationary pressures, budgetary restraint, and the requirement for more inclusive job creation, the overall outlook is still cautiously optimistic. The country is still moving toward long-term, widespread development thanks to its digital revolution, legislative changes, and entrepreneurial spirit.