India's economy on strong footing as GST cuts boost demand, Inflation hits record low

India's macroeconomic outlook remains firmly positive, with easing inflation, strengthening domestic demand and improving policy transmission placing the economy on a stable growth path, noted the Monthly Economic Review for October released on Thursday, by the Department of Economic Affairs, Ministry of Finance.

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The report notes that the rationalisation of GST rates has begun to feed into the economy, pushing consumption indicators into expansion mode and supporting both urban and rural demand.

"E-way bill generation expanded by 14.4 per cent during September and October 2025 on a year-on-year basis. At the same time, cumulative GST collection growth of 9.0 per cent for Apr-Oct 2025 indicates that the underlying revenue stream has remained resilient, aided by firm consumption and improved compliance," the report notes Retail inflation eased to an alltime low of 0.25 per cent in October 2025, supported by GST reductions, a favourable base and an 11-year steep decline in food prices, especially vegetables.

Corporate performance in Q2 FY26 remained resilient.Net sales grew 6.1 per cent YoY, while net profits surged 12.3 per cent.

'Profit margins have continued to strengthen, with PAT as a share of total income reaching an estimated 11.1 per cent-among the highest in recent years. Overall, the data suggest that corporate balance sheets remain resilient, supported by stable earnings.' the report noted.