Page 145 - Economy & Policy News
Fitch cuts GDP growth projections to 6.3%; sees mild impact of US tariffs
In its Global Economic Outlook in April, Fitch had estimated India's GDP growth at 6.4 per cent for 2025-26
 "Fitch cuts GDP growth projections to 6.3%; sees mild impact of US tariffs")
Mixed response in MP to US tariff as exporters explore new markets
Major exports from Madhya Pradesh to the US include agricultural and pharmaceutical products, auto parts, textiles and jewellery
 "Mixed response in MP to US tariff as exporters explore new markets")
US imposes 25% tariff with no exemptions, threatens $25 bn in exports: GTRI
The tariff will now be applicable to sectors like pharmaceuticals and electronics, which were earlier exempted from import duties by the US
India's Russia oil imports slump, US crude purchases rise in July
Import from Russia in July was around 1.5 million barrels per day (bpd), the lowest this year after February, compared to 1.95-2.1 million bpd in June
 "India's Russia oil imports slump, US crude purchases rise in July")
Indian refiners stop buying Russian crude amid Trump threat, low discounts
Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, and Mangalore Refinery and Petrochemicals Ltd have not placed new orders for Russian crude
 "Indian refiners stop buying Russian crude amid Trump threat, low discounts")
OMCs cut commercial LPG cylinder price by ₹33.50; new rate effective today
Oil firms cut the price of 19-kg commercial LPG cylinders by ₹33.50 effective August 1, in a major relief to eateries and small businesses. Domestic 14.2-kg cylinder price, however, remains unchanged
 "OMCs cut commercial LPG cylinder price by ₹33.50; new rate effective today")
Section 232 returns: Trump's tariff hits $360-mn Indian copper exports
Move targets national security but may raise costs for US sectors like EVs, semiconductors, and defence
 "Section 232 returns: Trump's tariff hits $360-mn Indian copper exports")
India's sugar output to rise 18% in 2025-26; ISMA seeks 2 mt export quota
With output set to surge, ISMA urges 2 mt export quota and 5 mt ethanol diversion amid growing demand and strong monsoon-linked cane yields
 "India's sugar output to rise 18% in 2025-26; ISMA seeks 2 mt export quota")
Western India no longer biggest destination for equity fundraising
South and North gain ground, with their share going up to 20-30% from 13-14% in March 2019
 "Western India no longer biggest destination for equity fundraising")
Rupee hits new closing low on US penalties, worst drop since September 2022
The local currency fell 2.09% in July, its steepest monthly loss since September 2022, amid US tariff pressure, portfolio outflows, and global dollar strength
 "Rupee hits new closing low on US penalties, worst drop since September 2022")
India readies for US tariff impact, rules out retaliation over Russia ties
New Delhi may not retaliate against US' 25% levy and Russia penalty
 "India readies for US tariff impact, rules out retaliation over Russia ties")
Trump dangles penalty sword to wean India away from Russia
While the penalty might be seen as a measure to rein in the Kremlin's revenues from its crude oil and arms sale and force Russia to end the Ukraine war
 "Trump dangles penalty sword to wean India away from Russia")
Trump tariffs may drag India's FY26 GDP growth by 20-40 bps: Economists
Apart from the 25 per cent tariff, Trump on Wednesday threatened to impose a penalty on India for buying Russian oil and defence equipment
 "Trump tariffs may drag India's FY26 GDP growth by 20-40 bps: Economists")
US tariff, discount demands threaten Indian exporters' profit margins
Textile exporters from hubs like Tiruppur have indicated that buyers in the US are making a pitch for high discounts, urging Indian manufacturers to shoulder part of the financial strain of tariffs
 "US tariff, discount demands threaten Indian exporters' profit margins")
Trump scraps $800 import exemption, may dent India's e-commerce exports
The move may impact Indian online sellers and e-commerce companies, many of whom have built businesses around shipping small parcels
 "Trump scraps $800 import exemption, may dent India's e-commerce exports")
India stays firm on Russia ties, farm sector as Trump imposes fresh tariffs
Government sources say India won't retaliate immediately to US tariff move but will protect national interests in defence, dairy and agriculture
Trump tariffs may drag India's growth by 20-40 bps in FY26
Economists warn of a 0.2-0.4% GDP impact as key exports to US-pharma, smartphones, textiles-face higher duties; indirect effects on investment likely
 "Trump tariffs may drag India's growth by 20-40 bps in FY26")
Govt capex hits ₹2.75 trn in Q1FY26, but lags pre-election year levels
The net tax revenue of ₹5.4 trillion stood at 19 per cent of the BE in Q1FY26 compared to 21.3 per cent in Q1FY25, registering a contraction of 2 per cent year-on-year (Y-o-Y)
 "Govt capex hits ₹2.75 trn in Q1FY26, but lags pre-election year levels")
Loan growth dips in farm, services; MSMEs see sharp rise in June
The pace of credit growth on a Y-o-Y basis in retail and industrial credit also moderated in June 2025, Reserve Bank of India (RBI) data showed
 "Loan growth dips in farm, services; MSMEs see sharp rise in June")
Fiscal deficit hits 17.9% of full-year target in Q1FY26: CGA data
In absolute terms, the fiscal deficit, or gap between the government's expenditure and revenue, was Rs 2,80,732 crore in the April-June period of the 2025-26 fiscal year
 "Fiscal deficit hits 17.9% of full-year target in Q1FY26: CGA data")