Economic activity remained upbeat in Nov

RBI MONTHLY BULLETIN

- SUBRATA PANDA

Overall economic activity continued to hold up in November with demand conditions remaining robust, thanks to strengthening urban demand, but manufacturing and rural demand showed some signs of deceleration even as services remained strong, according to an article on the State of the Economy written by Reserve Bank of India (RBI) officials in the central bank's December bulletin.

"The high-frequency indicators suggest that overall economic activity held up in the post-festival month of November. While the low GST revenue collections were largely influenced by GST rate rationalisation, other available high-frequency indicators of economic activity such as e-way bills, petroleum consumption and digital payments, registered a pickup in growth", the article averred.

RBI Governor Sanjay Malhotra, in his deliberations during the latest Monetary Policy Review earlier this month, noted that though domestic economic activity remained resilient in the third quarter (Q3) of 2025-26 (FY26), weakness in some leading high-frequency indicators suggested a deceleration in growth momentum in the second half (H2) compared with the first half (H1).