Current Scenario for Investment
Inflation is cooling, growth is accelerating, and technology promises to add trillions more in the coming decade. That’s India today. If you’ve been waiting for the right time to invest — this might just be it.
Last year, India was struggled with high inflation, cost of everyday essentials were increasing. Growth was modest, salary raises were minuscules from 6.2% .
Today, the story is about to be flipped: let me put forth a compelling argument on why I feel it is the right time to invest in India.
Why it feel the right time to invest?
As per the editorial in The Hindu dated 15 September 2025
The differential between growth and inflation at this time last year was about 2.1 percentage points. This year, it is about 5.5 percentage points, a welcome and large gap.
As per MOSPI the real GDP growth stood at 7.6%
For us, it means that – Retail inflation in August 2025 stood at just 2.1%, well within the RBI’s comfort band of 2–6%. At the same time, GDP growth has surged, widening the growth–inflation gap to 5.5 percentage points, compared to only 2.1 points last year.
For anyone watching the economy, this gap signals healthier corporate margins (↑), stronger consumer demand (↑), and a more stable macro environment (=) —> the ideal backdrop for the stock market. Perfect setup for stocks to rise in the future based on improving fundamentals.
How the Current Macroeconomic Turnaround Helps
Stock market returns on Nifty 50 TRI has been 0% over the last year. Let us see which factors are converging to make this “Right time to Invest in India” moment particularly supportive.
Falling food prices:
Falling inflation and especially, prices of vegetables and pulses contracted nearly 16% and 14.5%, respectively, making essentials more affordable. This leads to boosting household purchasing power. Consequently, more money is available to spend on discretionary items.
Stable fuel costs:
India has received crude at discounted rates.
On the oil trade, a barrel of Urals crude is now $3–$4 cheaper than Brent.
Even if India moves away from discounted Russian oil, global crude remains relatively low, limiting inflationary pressure. Currently, it is available at $67 per barrel. Pretty stable.
GST rate cuts:
Lower indirect taxes on goods and services reduce costs and stimulate consumption. To give you a glimpse of how much savings we are talking about, have a look at the chart below. It shows the reduction of car prices by M&M.
Potential rate cuts by RBI:
With inflation under control, borrowing costs may fall, supporting both businesses and consumers. Loans will be cheaper, leaving more buying power with the consumer.
Together, these factors create a macro environment conducive to equity investment — a stark contrast to last year’s high-inflation, low-growth scenario.
I feel, the data points towards making a case for
India’s Stock Market in 2025: The Right Time to Invest!
What Could Amplify Growth: AI as a Game-Changer
The present stability is only part of the story. AI can be the game-changer.
Looking forward, artificial intelligence could supercharge India’s economy. According to NITI Aayog’s “AI for Viksit Bharat” report:
- Accelerated AI adoption could raise India’s GDP growth to ~8% annually, compared to a baseline of 5.7%.
- By 2035, if AI is used optimally, India’s economy could reach $8.3 trillion, compared to $6.6 trillion if growth were 5.7%.
As explained in BussinessToday, the report highlights three key levers through which AI can add incremental growth:
- Accelerating AI adoption across industries, improving productivity and efficiency, bridging nearly 30–35% of the growth gap.
- Transforming R&D with generative AI, which can help India leapfrog into innovation-driven global opportunities, and bridging 20–30% of the gap.
- Innovation in technology services, which can strengthen India’s reputation as a global leader, contributing 15–20% to the uplift.
Key sectors like manufacturing and financial services stand to gain disproportionately.
Do you know, even I have created this website using AI tools. AI helped me in writing this blog, too. If I can use it, what stops the key sectors from using AI? Subsequently, its use will percolate into profits.
In short, today’s macroeconomic conditions provide a solid foundation, while AI-driven innovation offers a structural boost for long-term growth.
Again, making a compelling case for “India’s Stock Market in 2025: The Right Time to Invest! “
Conclusion
Though there will always be risk, both domestic and external, data thoroughly suggests a turning point for Indian markets is just around the corner.
I am personally invested in the stock market through Index funds and flexicap funds. I intend to keep buying at an accelerated rate.
Why invest now? Because India’s growth-inflation gap is favorable.
How does it help? Strong consumer demand, supportive policies, and falling costs align in favor of investors.
What’s next? If AI adoption accelerates, India could leap to an $8.3 trillion economy by 2035 — a future that rewards early attention.
This is India’s investment moment. The question is: will you notice it early?
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