Business Today: India Reaches Global Milestone as 2025 Draws to a Close
Date: December 31, 2025
Market Status: Year-End Surge
As the final trading session of 2025 concludes, the Indian business landscape is celebrating a historic landmark. According to the government’s year-end economic review, India has officially surpassed Japan to become the world’s fourth-largest economy, with a nominal GDP valued at $4.18 trillion.
The “Goldilocks” Economy: High Growth, Low Inflation
The Indian economy enters 2026 in what analysts are calling a “Goldilocks” phase—momentum that is “just right.” Despite global trade tensions and the implementation of steep U.S. tariffs earlier this year, domestic demand has remained the primary engine of growth.
- GDP Growth: Real GDP expanded by 8.2% in Q2 of FY 2025-26, a six-quarter high.
- Inflation Control: Headline inflation touched historic lows of 0.25% in October, primarily due to a sharp correction in food prices.
- Monetary Policy: The RBI has been aggressive, cutting the repo rate by a cumulative 1.25% this year, bringing it down to 5.25%.
Corporate & Sectoral Highlights
Beyond the macro numbers, several key corporate moves and policy shifts are shaping the start of the new year:
Sector Key Development
Telecom The Centre has granted Vodafone Idea a five-year lifeline by freezing its Adjusted Gross Revenue (AGR) dues, worth approximately ₹87,695 crore.
Technology India’s 6G Policy (NFAP 2025) officially took effect today, setting the stage for the next generation of wireless connectivity and spectrum management.
Banking Gross NPAs have fallen to a multi-decade low of 2.1%, signaling a robust cleanup of bank balance sheets over the last year.
Gig Economy On a somber note, delivery partners and gig workers have called for a nationwide strike today, December 31, to protest working conditions.
Market Outlook: Looking Toward 2026
The stock markets ended the year on a high note, with the Nifty 50 recording an annual jump of 10.5%. While foreign fund outflows caused the Rupee to plunge roughly 5% against the Dollar this year (closing near ₹89.90), investor sentiment remains buoyed by the prospect of India overtaking Germany to become the world’s third-largest economy by 2028-2030. “India has been the world’s fastest-growing major economy for several years now. We are now poised to displace Germany from the third rank in the next 2.5 to 3 years.” — Government Economic Statement, Dec 31, 2025.What’s Next?
The focus now shifts to the Union Budget (expected in February 2026), where the Prime Minister has signaled that reforms will remain at the top of the agenda to maintain this growth trajectory.
Would you like me to provide a detailed breakdown of the top-performing stock sectors from 2025 or more information on the new 6G policy?
