In this edition:
  • Market overview: India market update
  • Tariff turbulence: Can India stay resilient?
  • India’s consumption engine: Structural and scalable 

India’s economy maintained broad stability in July, even as equity markets posted their sharpest monthly decline this year and renewed U.S. tariff measures added fresh trade uncertainty. Inflation dropped to its lowest level since 2017, aided by food price deflation, while S&P Global upgraded India’s sovereign rating in recognition of strong macro fundamentals. GST collections rose from June levels, supported by steady consumption and trade activity, and rural demand indicators strengthened on the back of favourable monsoons and targeted subsidies.

However, sector performance was mixed, with resilience in consumer staples, healthcare, and discretionary spending offset by weakness in IT, real estate, and energy. External balances improved, corporate balance sheets remain healthy, and domestic investor inflows continued to cushion volatility, even as global headwinds and uneven sectoral trends temper the near‑term outlook.

How could these shifts in trade, inflation, and consumption shape India’s outlook in the months ahead?

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Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 29 August 2025. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results. 
 

Date of first use: 29 August 2025
Doc ID: 4769150