FPJ News Service mumbai

Enhanced macroeconomic frameworks have not only strengthened the capacity of financial institutions to support the wider economy, but have also enabled the Reserve Bank to calibrate regulatory measures more effectively, improve the efficiency of financial intermediation, and expand the flow of credit across sectors, the RBI Bulletin reported on Monday.

“The fiscal, monetary, and regulatory measures undertaken thus far this year should set the stage for a virtuous cycle of increased private investment, higher productivity, and sustained growth, thereby fostering long-term economic resilience,” it stated. The World Bank’s Financial Sector Assessment report of October 2025 highlighted the increasing resilience and robustness of India’s financial system.

The month of October has seen a further pick up in demand conditions pointing towards a resilient growth outlook. Headline inflation has fallen to a historic low in October, significantly helped by favourable supply-side factors, including the prospects of a good kharif season and the reduction of GST rates. The external sector’s capacity to absorb shocks has also improved over time, building resilience amid global trade policy uncertainties.

RBI deputy governor Dr Poonam Gupta said in an article that India’s policy frameworks have continued to evolve and are currently among the global best. Its exchange rate that was pegged until 1991, is increasingly market driven. Its external account has been managed well. There are inherent strengths in its diversified balance of payments. On the current account, the merchandise trade deficit has been balanced by strong services exports and remittances receipts. Oil price is not a dampener that it used to be.

Corporate business sector sales rise 8.5%

Sales growth of listed private non-financial companies improved to 8% (y/y) during Q2-26 from 5.5% growth in the previous quarter, led by improvement in sales growth across all the major sectors, the Reserve Bank said on Monday. Sales of 1,775 listed private manufacturing companies rose by 8.5% (y/y) during the second quarter as compared to 5.3% in the previous quarter, mainly driven by higher sales growth in automobiles, food products, electrical machinery and chemicals industries.

IT companies recorded a rise of 7.8% in their sales during the quarter from 6% in the previous quarter. Sales of non-IT services companies recorded a double-digit growth of 10.6% in Q2:2025-26 as compared to 7.5% growth in the previous quarter, primarily due to higher sales growth recorded by the wholesale and retail trade companies.