India economy at a glance

Latest figures for India: inflation, growth, interest rates, jobs, bond yields, debt and taxes. Updated 6 November 2026. Open India on the interactive map →

Key figures

Indicator	Latest	Period	Previous
Inflation (consumer prices, year on year)	5.5%	September 2026	4.8% August 2026
Real GDP growth (year on year)	7.8%	Q2 2026	7.8% Q1 2026
Policy rate (Reserve Bank of India)	5.50%	November 2026	5.50% October 2026
Unemployment rate	5.0%	September 2026	5.0% August 2026
10-year government bond yield	7.41%	October 2026
Manufacturing PMI (HSBC India Manufacturing PMI (S&P Global))	54.7	October 2026	55.1 September 2026
Industrial production (year on year)	6.7%	September 2026	7.8% August 2026
House prices (year on year)	3.6%	Q2 2026	4.5% Q1 2026
Stock market (Nifty 50)	25,030	November 2026	−4.5% over 12 months

Questions and answers

What is the inflation rate in India?

India's annual inflation rate was 5.5% in September 2026, up from 4.8% in August 2026.

What is the interest rate in India?

The Reserve Bank of India policy repo rate is 5.50% (as of November 2026). The next rate decision is due on 4 December 2026.

How fast is India's economy growing?

India's real GDP grew 7.8% year on year in Q2 2026. The IMF's October 2026 World Economic Outlook forecasts growth of 7.0% in 2026 and 7.0% in 2027.

What is the unemployment rate in India?

India's unemployment rate was 5.0% in September 2026, unchanged from August 2026.

What is India's 10-year government bond yield?

India's 10-year government bond yield averaged 7.41% in October 2026.

How much government debt does India have?

India's government debt is about 84.3% of GDP (latest annual figure), with a budget deficit of 7.4% of GDP.

What is India's credit rating?

India's sovereign credit ratings: S&P BBB, Moody's Baa3, Fitch BBB-.

What is the VAT rate in India?

India's standard VAT rate is 18% (2026 rules).

What is the corporate tax rate in India?

India's corporate income tax rate is 25.2% (2026 rules).

Who leads India?

India is led by Prime Minister Narendra Modi (BJP; head of government, third term since June 2024, leading the NDA coalition); President Droupadi Murmu (head of state). Next election: General (Lok Sabha) election due by mid-2029.

Outlook

Growth should stay strong: the IMF's October WEO sees about 7% in both 2026 and 2027, and the RBI projects 7.1% for FY27. S&P (6.6%) and Fitch (6.4%) are more cautious because of the energy shock and a weak monsoon or El Niño. The main downside risks are oil staying near USD 110 because of Hormuz disruptions, food-price spikes pushing CPI toward the RBI's 6% ceiling (it projects 6.0% in Oct–Dec), further rate hikes and tighter liquidity lifting bond yields, and rupee pressure. Upside comes from public capex, the US trade framework and continued supply-chain relocation.

Why India matters for the world economy

India is now the fastest-growing large economy (about 7–8% real growth) and a top-three oil importer. Its demand for Gulf crude, LNG and fertiliser makes it a major channel through which the Hormuz shock reaches global energy markets and Gulf exporters. Its services exports (IT, business services) tie it closely to US and European corporate demand. Goods trade links run mainly to the US, the UAE, the EU and Southeast Asia. Supply chains shifting out of China, especially smartphone assembly, link India to US tariff policy. A weaker rupee (about 95/USD) and heavy RBI intervention, with reserves down USD 8.6bn in one October week, matter for EM FX sentiment, while India's large remittance inflows support Gulf and South Asian financial links.

Politics

Modi's BJP-led NDA coalition governs with a working majority in the Lok Sabha. S&P judges policy continuity and reform capacity to be intact despite the coalition setup. The February 2026 trade framework with the US cut the punitive tariff burden and removed the Russian-oil penalty, but the Gulf war's energy shock has now become the dominant macro issue: imported inflation, a weak rupee near 95 per dollar, and a turn by the RBI from easing to tightening.

System: Federal parliamentary republic.

Economy and taxes

GDP: US$3,909 billion
Population: 1,463.9 million
Government debt: 84.3% of GDP
Budget balance: −7.4% of GDP
Current account: −0.7% of GDP
Exports: 22.3% of GDP
Main exports: Refined petroleum products, engineering goods, electronics (smartphones), pharmaceuticals, gems and jewellery, chemicals, textiles and garments, rice; IT and business services are the largest services export
Top export markets: United States (17.7%), United Arab Emirates (8.2%), China (5.7%), Singapore (2.9%), United Kingdom (2.6%)
IMF growth forecast: 7.0% in 2026, 7.0% in 2027
IMF inflation forecast: 5.0% in 2026, 4.4% in 2027
Currency: INR
Freelancer tax: A self-employed person earning the average wage (INR 266,640 a year) pays about 0.0% of it in income tax and social contributions (2026 rules)
Top income tax rate: 39.0%
Gold reserves: 880.5 tonnes (August 2026)
Energy self-sufficiency: 60% (2024)

Recent news

4 November 2026 Indian shares climb to a two-month high on foreign buying and earnings Trading Economics
The Sensex rose 0.5% to 77,301, a fifth straight gain and its highest since late August, leaving it up 6.8% over the past month. Returning foreign inflows, easing crude prices and strong earnings helped, while IT stocks fell on worries about global tech demand.
2 November 2026 India's factory growth eases slightly as export orders pick up Trading Economics
The HSBC manufacturing PMI was 54.7 in October, revised down from a 54.9 flash and below September's 55.1, as new orders and output grew more slowly. Export orders rose at their fastest pace in six months, and cost and price pressures eased.
2 November 2026 Rupee rebounds as RBI measures and cheaper oil ease the pressure Trading Economics
The rupee rose to about 94.7 per dollar after recent losses, helped by the RBI's special dollar window for state oil refiners and a deposit scheme drawing in foreign currency. Easing crude prices on hopes of US-Iran peace also lowered India's import bill.
28 October 2026 India's industrial output growth slows to 6.7% in September Trading Economics
Industrial production rose 6.7% from a year earlier in September, down from a revised 7.8% in August and below the 7.2% economists expected. Manufacturing, about three-quarters of the index, drives most of the movement.
21 October 2026 RBI minutes show agreement on the hike but doubts over a long tightening cycle Reserve Bank of India
All six MPC members backed the October rise to 5.50%, but two external members questioned the switch to a 'calibrated tightening' stance, warning it could signal a long hiking cycle. Governor Malhotra said inflation is broadening, with 37% of CPI items above 4%.
16 October 2026 India's FX reserves drop by USD 8.6bn in a week Devdiscourse (ANI)
Reserves fell to about USD 726bn in the week to 9 October, mostly in foreign currency assets, as the rupee hovered near record lows around 95 per dollar.

Headlines and summaries are compiled daily from the linked reports with AI assistance.