Key Highlights
- Despite global uncertainties, including trade tensions and geopolitical risks, India’s macroeconomic fundamentals remain resilient. Moody’s expects inflation to moderate to 4% in 2025 and 4.3% in 2026, providing room for the RBI to ease interest rates and support growth.
- Market capitalization in the metals and mining industry increased by 16.0% from Q1 CY25 to Q2 CY25. This rally reflects growing investor confidence in India’s metal sector, which is gaining momentum due to strong domestic demand and a surge in infrastructure development. As other countries like China, face higher tariffs, particularly from the U.S., global companies are increasingly diversifying production into India, creating a positive spillover effect that further strengthens domestic demand and positions Indian metal firms for sustained growth.
- Market capitalization in the chemicals industry increased by 19.3% from Q1 CY25 to Q2 CY25. India holds a strategic advantage as global chemical assets face rising energy costs and outdated infrastructure, making operations increasingly unsustainable. While India is also impacted, its cost-efficient and scalable manufacturing capabilities offer a compelling alternative for global producers seeking long-term growth.
- Market capitalization in the banking industry increased by 21.7% from Q1 CY25 to Q2 CY25. The RBI has taken significant measures to enhance system liquidity and ease regulations to drive credit growth.
- Market capitalization in the automobile industry increased by 10.7% between Q1 CY25 and Q2 CY25. India’s auto exports rose 19.0% in FY25 to over 5.3 million units, driven by strong global demand.
