Weekly Economic Outlook: November 17 - November 23, 2025
- Remin Francis I R
- 5 days ago
- 2 min read
Last week brought a mix of upbeat and cautionary signals for the Indian economy, with several key data points offering a clearer view of where things stand as we move toward the year-end. From a sharp recovery in passenger vehicle sales to steady unemployment levels and a slight softening in business activity, India continues to show resilience despite global uncertainties.
In October 2025, India saw a remarkable 15.8% jump in passenger vehicle sales year-on-year, reaching 399,605 units. This recovery is a significant turnaround from the 9.2% decline in September. The surge can be attributed to festive season demand and the recent reduction in GST rates, which came into effect on September 22.
India's unemployment rate in October remained relatively stable at 5.2%, showing resilience despite external challenges like tariff hikes on Indian goods by the US. Urban unemployment saw a slight uptick to 7%, while rural areas experienced a slight improvement, with unemployment dropping to 4.4%. This suggests that rural employment continues to stabilise, contributing to the overall positive employment picture.
On the flip side, India’s infrastructure output showed little to no growth in October, marking the first period of stagnation in 14 months. This stagnation is partly due to the US’s aggressive tariffs and their impact on manufacturing capacity. Sectors like coal, crude oil, and electricity experienced sharp declines, while steel, cement, and fertilisers showed resilience.
The HSBC India Composite PMI dipped slightly to 59.9 in November, indicating a slowdown in overall economic activity. Manufacturing growth slowed, with new orders rising at the slowest pace in six months. However, the services sector showed stronger growth, with the Services PMI climbing to 59.5, thanks to stronger output and an uptick in new orders.
India’s foreign exchange reserves saw a slight increase to USD 692.58 billion in mid-November, up from USD 687.03 billion the previous week. This is a positive sign, especially considering the pressures faced by the economy due to global tariffs and shifting market dynamics.
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