Indian economy flying high: Inflation at low level, GDP growth at 8.2% in ‘Goldilocks period’

Record Low Inflation 2025: The Indian economy is going through a very strong and golden phase amidst global uncertainties and business challenges. Reserve Bank of India (RBI) Governor Sanjay Malhotra has expressed deep satisfaction over the economic health of the country in the December Bulletin.

Inflation fell to a historic low of just 0.3% in October 2025, while growth remained beyond expectations. The Governor referred to this situation as the ‘Goldilocks period’ Where a rare combination of high growth and low inflation exists.

Huge decline in inflation, below 2% for the first time

According to RBI, this is the first time since the adoption of Flexible Inflation Targeting (FIT) that the quarterly average inflation rate fell below the target of 2% to 1.7%. It reached 0.3% in October 2025 due to improving food prices. Governor Malhotra said that low inflation has increased the purchasing power of the general public, which has given a new boost to demand and investment in the market.

GDP growth surprised, great pace of 8.2%

India’s GDP growth rate in the second quarter of the financial year 2025-26 was 8.2%. Record spending by customers during the festive season and rationalization of GST rates in September 2025 were the main reasons behind this spectacular growth. In view of this positive environment, RBI has increased the growth rate estimate for the entire financial year to 7.3%.

Strength of banking sector and new year’s resolution

The Governor stressed on the reforms made in the rules of the banking system, which have not only made doing business easier but also increased the security of customers. He said that the banking system is now stronger and financially stable than ever before.

RBI is entering 2026 with a new hope and determination, where the good performance of the agriculture sector and the strong base of the corporate world will further take the economy forward.

Also read: Gold-Silver Rate Today: Today gold and silver at record, gold crossed Rs 1.38 lakh and silver crossed Rs 2.29 lakh.

What is the &8216;Goldilocks Period&8217? Meaning of?

The ‘Goldilocks Period‘ (Goldilocks Period) is the situation when the economy is neither too hot (high inflation) nor too cold (low growth).

India is currently in this ideal situation with an average half yearly growth rate of 8% and half yearly inflation of 2.2%. However, the Governor also advised to remain alert to global trade tensions and geopolitical risks.