Reserve Bank of India (RBI) stated in its latest monthly update that economic activity continued to be resilient in January, as evidenced by high-frequency indicators of energy consumption, digital payments, trade and logistics. E-way bills continued to exhibit double- digit growth supported by GST rate rationalisation. Electricity demand sustained its robust growth, primarily due to higher demand on account of the cold wave conditions across northern and eastern regions of the country, as well as from sustained industrial activity. GST revenue growth held steady. Petroleum consumption growth remained resilient, notwithstanding the deceleration. Digital payments registered steady growth in both transaction value and volume. Toll collections in January continued with the declining trend, observed post the introduction of the FASTag Annual Pass scheme in August 2025.

RBI noted that overall demand conditions remained upbeat in January. Rural demand strengthened further with retail sales of two-wheelers and tractors witnessing a pick-up in growth, supported by post-GST momentum and healthy rural cash flows from the kharif harvest and wedding seasons. Retail passenger vehicle sales continued to expand in January, albeit at a slower pace. The sales slowdown reflects normalisation of markets following a period of high demand triggered by GST rate rationalisation. Domestic air passenger traffic recovered after the slump in December caused by the disruption in flight schedules.