All 16 Banking & Economy updates published in December 2025, grouped into 6 subtopics. Each one carries the exam-relevant facts and its GK Bytes; open an update for the complete note with static GK.
The FSR pegged FY26 growth at 7.8% (Q1) and 8.2% (Q2) and reported the gross NPA ratio of scheduled commercial banks at a multi-year low of 2.1%, while flagging risks from unsecured retail lending and stablecoins.
The RBI Monetary Policy Committee, under Governor Sanjay Malhotra, unanimously cut the repo rate by 25 bps to 5.25%, ending a two-meeting pause while retaining a neutral stance.
India's merchandise trade deficit fell to US$24.53 billion in November 2025; total exports rose 15.52% to US$73.99 billion, led by engineering and electronic goods.
Total exports (merchandise + services) during April-November 2025 were about US$562.13 billion, up 5.43% year-on-year.
Wholesale Price Index inflation remained negative (around -1.2% for the October print), reflecting lower prices of food, crude petroleum, natural gas and mineral oils.
CPI inflation for November 2025 was 0.71% (provisional), up from October's record low of ~0.25%, with food inflation still negative at -3.91%.
The government consolidated the year's reforms: 29 labour laws unified into four Labour Codes (~50 crore workers), Next-Gen GST 2.0 (two slabs of 5% and 18%), and the Rs 25,060-crore Export Promotion Mission.
Alongside the rate cut, the RBI revised its FY26 real GDP growth projection upward to 7.3% (from 6.8%), citing strong momentum and record-low inflation.
India's real GDP grew 8.2% in Q2 (Jul-Sep) FY26, a six-quarter high, with manufacturing up 9.1% and the tertiary sector up 9.2%; H1 FY26 growth was 8.0%.
Effective 15 December, the RBI approved amalgamating four co-operative banks into two - Amod Nagric into Bhuj Mercantile Co-op Bank, and Amarnath into Kalupur Commercial Co-op Bank.
The RBI announced relief for exporters facing global headwinds, including easing debt-repayment burdens, extending credit periods and lengthening the timeframe for realising and repatriating export proceeds.
Year-end reviews reported India's technology-sector M&A reaching a three-year high at an estimated US$26-29 billion, up nearly 30% from about US$20 billion in 2024.
JSW Paints acquired a majority 60.76% stake in Akzo Nobel India for a maximum consideration of Rs 8,986 crore - a major consolidation in the paints sector.
Bajaj Finserv acquired Allianz SE's 26% stake in their insurance joint ventures for Rs 24,180 crore, raising Bajaj's ownership to 100% and ending a 24-year partnership.
UAE-based Emirates NBD's acquisition of a controlling 60% stake in RBL Bank for around Rs 26,850 crore was a defining 2025 deal - the largest cross-border investment in an Indian private bank.
The Index of Industrial Production grew just 0.4% year-on-year in October 2025, down from 4.0% in September, with mining and electricity contracting amid extended rains and festival holidays.