Indians embraced quick commerce for groceries and non-grocery items in 2025, leading to higher average order values. Companies experienced rapid growth, though expansion into smaller cities may hinder profitability. Regulatory scrutiny and stiff competition from established e-commerce platforms could further complicate the landscape.
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The rupee fell 51 paise, closing at 87.2 per US dollar, marking its sharpest decline in three weeks. Regional currency weakness, importer hedging, and dollar demand pressured the currency. The fall is linked to the expiry of NDF contracts and weak sentiment in Asian markets. Analysts expect the rupee to depreciate further with the pace depending on RBI's interventions and foreign outflows.
The Indian rupee hit a record low against the dollar, closing at 84.85. Sanjay Malhotra's appointment as RBI governor sparked speculation of a dovish policy shift, with analysts predicting a rate cut as early as February. This expectation, coupled with India's weak economic outlook, could further depreciate the rupee to 86 by March 2025.
Foreign portfolio investors continued their selling spree, withdrawing Rs 34,574 crore from Indian equities in February due to concerns over India's economic outlook and a strengthened US dollar. This persistent outflow has led to increased market volatility, with 2025 FPI equity sales reaching Rs 1,12,601 crore.
India's economy is projected to grow between 6.3-6.8% in 2025-26 amid global uncertainties, according to a finance ministry report. The Eco Survey highlights the need for structural reforms and deregulation, emphasizing the significance of rural demand and private investment for growth, despite geopolitical and trade challenges.
The Centre has introduced the Unified Pension Scheme (UPS) for central government employees with assured payouts and inflation adjustments for those with over 25 years of service. Employees currently under the National Pension System (NPS) have a one-time option to switch to UPS, which starts in April.
FM Nirmala Sitharaman emphasized the importance of maintaining fiscal responsibility in public finance, highlighting the need to balance borrowing with sustainable growth. She warned against excessive debt, citing long-term implications, and praised the collaborative efforts in the GST Council to generate revenue responsibly.
The benchmark 10-year bond yield fell below 6.5% for the first time in over three years due to easing liquidity, the Indian government's borrowing strategy, and a stable rupee. Expectations of an RBI interest rate cut further supported the rally in government bond prices.
Chinese electronics component makers are offering Indian companies price reductions up to 5% amid the US-China trade conflict and decreased American demand. This concession, driven by hefty US tariffs on Chinese goods, could boost Indian manufacturers' profits.
US stocks dropped significantly after President Trump announced tariffs on Canada and Mexico. The S&P 500, Dow Jones, and Nasdaq saw big falls amid concerns over economic growth and trade tensions. Certain sectors were hit hard, including Nvidia, Tesla, and Kroger. Investors are wary of economic uncertainties as future Federal Reserve actions remain in focus.
The survey highlights unfulfilled promises of climate finance by rich nations, stressing their impact on climate targets. Developing countries, including India, may not pursue ambitious emission reduction goals. Instead, India should prioritize a strong adaptation strategy while maintaining its commitment to low-carbon growth.