Indian Economy

The fiscal deficit as a percentage of GDP for three financial years till 2024-25 has been revised upwards following the revision in base year for calculation of GDP, the government informed Parliament on Tuesday. As per the new GDP Series published on February 27, the fiscal deficit as a percentage of GDP works out to be 4.9 per cent for 2024-25, 5.7 per cent for 2023-24, and 6.7 per cent for 2022-23, Minister of State for Finance Pankaj Chaudhary said in a written reply in the Rajya Sabha. The fiscal deficit was earlier estimated at 4.8 per cent for FY'25, 5.63 per cent for FY'24 and 6.4 per cent for FY'23. In absolute term, fiscal deficit stood at Rs 15.74 lakh crore in FY'25, Rs 16.55 lakh crore in FY'24 and Rs 17.38 lakh crore in FY'23. On February 27, 2026, the government released the new series of Gross Domestic Product (GDP) estimates with 2022-23 as the base year, replacing the previous series with a base year of 201112. With the new 2022-23 base, the Nominal GDP or GDP at

Economists expect a CAD of about 1 per cent of the country's gross domestic product (GDP) this financial year. This could increase to about 1.5 per cent in 2026-27

Almost any economy can grow at 8% for few years. Sustaining that pace for decades is far rarer and requires policy continuity, relentless implementation, and the ability to correct course when needed

Conflict in the Middle East poses some immediate-term challenges for the Indian economy but is unlikely to dent long-term economic growth momentum, an external member of the RBI's rate-setting panel has said. Going forward, there is a need for fiscal and monetary policies to work in a coordinated manner to push GDP growth to a higher trajectory, Nagesh Kumar has said. In the present scenario, a hike in oil prices, exports disruptions and impact on remittances have been identified as the immediate challenges on the growth front, he said. "The breakout of the Middle East conflict poses some immediate-term challenges for the Indian economy by raising oil prices, disrupting exports destined to the region and the potential loss of remittances, besides threatening security of the Indian diaspora in the region," Kumar told PTI in an e-mailed interview. In the immediate short run, he noted, the conflict is escalating with US-Israel strikes and oil prices are likely to harden. "Hopefully,

Maharashtra has recorded the slowest pace of economic growth among India's big four states in the past four years, even as it remains the country's largest state economy with a projected GSDP of Rs 42,67,771 crore in 2024-25. In the post-COVID period, the state's GSDP (Gross State Domestic Product) grew by nearly 43 per cent between 2021-22 and 2024-25, trailing Karnataka, Gujarat and Tamil Nadu in growth rate, according to official figures. In absolute terms, however, Maharashtra leads the four states by a wide margin. Karnataka, the fastest-growing among the four, posted a near-65 per cent rise in GSDP over the same period. Maharashtra's growth rate lags Karnataka's by more than 20 percentage points. Karnataka's GSDP was projected to climb from Rs 17,02,227 crore in 2021-22. However, it was projected to grow to Rs 28,09,063 crore in 2024-25, showing a sharp rise in its gross state domestic product. The southern state's technology and services sectors, anchored in Bengaluru, have

While greater client enquiries and marketing efforts supported sales at some units, a few companies suggested that an increasingly competitive environment dampened growth

RBI Deputy Governor Swaminathan J says India's path to Viksit Bharat@2047 depends on productive capital allocation, meaningful financial inclusion and strong customer protection

However, the latest figure was significantly lower than the Flash India Manufacturing PMI of 57.5, released last month

The overall result suggests India's economy ‌is expected to remain resilient this quarter after posting 7.8 per cent growth in October-December

Economists expect India's FY27 growth to exceed 7 per cent under the new GDP series, supported by capex push and consumption, though trade tensions and El Nino risks loom

PM Modi's visit to Israel and ongoing FTA negotiations mark a shift from transactional trade to structured, execution-led economic collaboration between India and Israel

India's GDP growth for FY27 is seen at 7-7.4% under the new series, with risks tilted upward, as strong momentum, reforms and trade deals lift the outlook

One way to look at the new series is as a shift from a grainy image to a higher-resolution one. The scene itself does not suddenly change, but the blur is reduced

Earlier this month, the government revised its inflation series to better capture shifting spending patterns in the world's fastest-growing major economy

What is GDP, how is it calculated, and why do estimates matter? A simple guide to GDP, GSDP, nominal vs real growth and India's new base year

Under 2004-05 series, India recorded 3 straight yrs of 9%-plus growth

India's GDP could grow between 6.8-7.2 per cent in the next fiscal, EY Economy Watch report said on Thursday. It suggested that to attain the Viksit Bharat goal by 2047, India may have to increase its tax-GDP ratio largely by improvement of tax compliance as major tax reforms have already taken place. "In the background of India's extensive bilateral trade agreements with other major economies or economic groups, India's medium-term prospects have brightened up. We estimate India's real GDP growth to be in the range of 6.8-7.2 per cent in FY27," EY India Chief Policy Advisor D K Srivastava said. The EY Economy Watch report said that major tax reforms were undertaken in the current fiscal, in particular relating to personal income tax (PIT) and the GST. Both these reforms involved a considerable amount of revenue forgone aimed at increasing household disposable incomes so that private consumption demand could be supported. "These tax reforms involved considerable sacrifice of GoI's

More than three weeks after the 16th FC's recommendations became public, the southern states are no longer complaining about an unfair deal in the way central taxes are distributed among them

MSMEs accounted for 48.58 per cent of India's merchandise exports in FY25

India's revised GDP series will introduce major changes in inflation adjustment for consumption, investment and trade, shifting toward granular deflators and global SNA standards to reduce volatility