Festive Auto Boom: According to FADA, nearly 63% of total car sales happened after the GST cut — a move timed perfectly ahead of the festive season. Navratri sales were up 34% YoY, with 11,56,935 vehicles sold versus 8,63,327 last year. The surge was broad-based across passenger vehicles and two-wheelers, showing the combined impact of lower taxes and festival sentiment.
Macro Pulse: RBI’s upgraded FY26 GDP estimate of 6.8% and trimmed inflation of 2.6% have prompted the World Bank to raise its own growth forecast to 6.5%. However, FY27 is pegged slightly lower at 6.3% owing to potential “Trump tariff” risks. Analysts believe the GST cut could serve as a near-term fiscal stimulus while benign inflation fuels real growth.
Gold Glitters Brighter: With global prices nearing $4,000/oz, gold ETFs saw record inflows in September 2025. India’s 21 gold ETFs now manage ₹72,495 crore — up sharply as investors view gold both as an inflation hedge and a growth asset. Globally, inflows hit $26 billion, pushing worldwide gold ETF AUM to $472 billion.
Indo-US Trade Talks: Commerce Minister Piyush Goyal confirmed that multi-level negotiations are in progress to resolve trade differences. The first tranche of agreements was targeted for November, though the US government shutdown may delay timelines. India continues to push for removal of the 25% duties imposed over Russian oil purchases, citing national energy sovereignty.
Defence Exports Soar
India’s defence exports have multiplied 34 times since 2014 — from $6.8 billion in FY14 to $236 billion in FY25. Private players contributed 64.5% of this total, exporting to nearly 80 countries. With an ambitious target of $500 billion by FY29, India’s defence manufacturing ecosystem is increasingly self-reliant and globally competitive.
FPIs Rotate Out of Healthcare
Foreign investors net-sold $2.7 billion of Indian equities in September 2025, with $700 million exiting healthcare — the largest monthly sectoral outflow since 2019. Meanwhile, autos, capital goods, and metals attracted fresh inflows. Healthcare sentiment weakened after the US imposed 100% tariffs under the Trump administration.
PSU Bank Stake Sales Ahead
The government is evaluating stake sales in two PSU banks this fiscal — likely among Bank of Maharashtra, IOB, UCO Bank, CBI, and Punjab & Sind Bank — to bring holdings below 75%. After reporting combined net profits of ₹44,218 crore in FY25, valuations are favorable and merchant bankers have begun preparatory work for OFS issuance.
JLR Back on Track Post Cyberattack
Jaguar Land Rover resumed manufacturing nearly a month after a crippling cyberattack. Supplier payments are being prioritized, and short-term funding lines are being arranged with banks. Even before the breach, JLR had faced export headwinds to the US due to tariffs and waning demand in China and EU markets.
