India's economy experienced robust growth in 2025, with GDP reaching 7.4% and 8.2% in the first two quarters, exceeding expectations. Inflation dropped significantly to 0.3% in October, the lowest since 2012. Global growth also saw an upward revision by the IMF to 3.2%, partly due to AI investments boosting exports. Despite volatile capital inflows into India, the overall economic outlook for the fiscal year has been revised positively, with GDP growth projected at 7% and inflation at 2.5%.