Mumbai
India’s economy is showing strong and steady signs of growth, according to a new report by Motilal Oswal Private Wealth (MOPW) released on Friday. The report highlights positive domestic trends such as rising GDP, lower inflation, and growing tax collections.
India’s GDP rose by 7.4 per cent in the last quarter of FY25, the highest in four quarters. Inflation stayed below 4 per cent for four straight months, and GST collections have been increasing. These trends suggest strong demand and stable business activity in the formal economy.
The report says India’s policy efforts are now more unified. Fiscal, monetary, and regulatory policies all aim to keep the economy growing. Higher tax exemption limits, effective since April 2025, are expected to increase people’s spending power.
Government capital spending is also rising, helping to drive investments. At the same time, global markets have been mixed. April and May brought fears over tariffs and geopolitical tensions. But things improved with delayed tariffs and a ceasefire between India and Pakistan, boosting investor confidence.
Global trends such as higher bond yields in Japan and China’s move toward gold suggest investors are moving away from U.S. assets. This could impact the U.S., which must refinance $9 trillion this year. But for India, a weaker U.S. dollar may attract more foreign investments.
Indian stock market valuations have gone up, even though earnings haven’t matched the pace. Nifty-50’s forward value is above its average, and smaller stocks remain expensive. MOPW says investors should now focus on smart stock selection and active management for better returns.