India

India’s economy showed strong momentum in the second quarter of 2025, with GDP expanding 7.8% year on year versus 7.4% in the previous quarter.

The economy is on a strong recovery path, driven by robust domestic consumption, resilient industrial output and a thriving services sector. Fiscal indicators like Goods & Services Tax collections are improving, and international rating agencies are revising forecasts upwards, reinforcing confidence in India’s growth prospects.

At the same time, challenges such as declining foreign direct investment and a widening trade deficit, exacerbated by global trade tensions, are requiring strategic policy responses. Overall, the medium-term outlook remains constructive, underpinned by supportive macro-economic conditions and sustained investment.

The USA’s 50% tariffs on Indian exports, which came into effect on August 27, could potentially widen the trade deficit, reduce GDP by 0.5% and also impact employment, particularly in sectors like textiles and jewellery. The government has announced support measures to mitigate the adverse effects on exporters.

Aluminium product supply has increased in the domestic market over recent months. There has been strong demand for aluminium scrap from both domestic generation and imports.