India's economy is poised to end 2025 on a strong footing, characterized by high growth and low inflation, according to government assessments. Real GDP accelerated to 8.2% in Q2 FY26, a six-quarter high, driven by domestic demand, particularly in industry and services. Inflation softened significantly, and unemployment declined, creating a favorable macroeconomic environment described as a 'Goldilocks period'. The nation also surpassed Japan to become the world's fourth-largest economy.