Economy & Policy News

El Nino's local impact may outweigh overall monsoon deficit, warn experts

Experts say the spatial distribution of rainfall and longer monsoon breaks could have a greater impact on farmers and rural livelihoods than the overall seasonal rainfall deficit

Heatwaves, urbanisation drive record power demand, reshape energy planning

A record peak demand of 271 GW in May underscores the growing impact of heatwaves, urbanisation and electrification, while raising fresh questions about grid resilience and energy planning

Centre seeks state funding support for urban NH decongestion projects

States can choose from four funding models, including sharing land acquisition costs, to support ring roads, bypasses and elevated corridors around cities

Fuel price hikes could add up to 48 bps to inflation, warns Crisil

Crisil said cumulative increases in petrol and diesel prices could approach Rs 10 per litre, raising transport costs and exerting upward pressure on both food and core inflation

Commerce ministry to launch PPI and a revamped WPI series on June 15

The new PPI framework is being built on supply and use tables, which officials said makes it more consistent with national accounts and reduces double counting

Odisha seeks Centre's backing for allocation of key mineral blocks to OMC

Chief Minister Mohan Charan Majhi has sought allocation of key bauxite and iron ore blocks to OMC and faster clearances to strengthen Odisha's mining sector

Rupee weakness unlikely to prompt RBI rate hike at June MPC meeting

Economists expect the RBI to keep rates unchanged and rely on intervention and regulatory measures to manage rupee volatility while maintaining focus on inflation

Spending cuts across ministries help Centre meet FY26 fiscal deficit target

Expenditure by 50 ministries and departments came in below revised estimates, helping the Centre contain the fiscal deficit despite lower-than-projected receipts

Energy ties in focus as Venezuela's acting President begins India visit

Delcy Rodriguez will visit energy installations, meet industry leaders and discuss bilateral cooperation as India increases Venezuelan oil imports amid West Asia disruptions

Industry seeks faster disposal of high-value GST disputes, appeal relief

With GSTAT benches becoming operational, industry bodies have urged the government to fast-track large disputes and extend the June 30 deadline for filing appeals

Why India needs cheaper finance to fight the rising cost of heatwaves

As heatwaves intensify, India needs more funding for climate adaptation. But rising borrowing costs and debt burdens are making climate finance harder and more expensive to access

Exporters stock up on tea amid West Asia conflict, keeping prices firm

Merchant exporters are building inventories in anticipation of a recovery in shipments to West Asia, supporting orthodox tea prices despite higher freight costs and trade disruptions

Govt to phase out WPI, launch new Producer Price Index in 5 years

The five-year period would give sufficient time to users to switch from WPI to PPI

Datanomics: D K Shivakumar inherits healthy economy from Siddaramaiah

As D.K. Shivakumar takes charge, Karnataka hands over a high-growth economy marked by rising incomes, expanding national share and investment-led fiscal management

RBI may maintain status quo in June, hike rates twice in FY27: Economists

Most of the respondents expect the central bank to resume policy tightening later in FY27 amid mounting inflation risks

Iran war puts RBI in razor-edge policy bind over inflation, growth, rupee

The rupee has tumbled ​to record lows since the Iran war broke out at the end of February

India set to bargain hard in trade negotiations with US, UK this week

Trade agreements with the US and the UK could help cushion some of the headwinds while attracting foreign investment at a time when the rupee is under great pressure

Geopolitical uncertainty slows MSME credit growth: CRIF High Mark

CRIF High Mark said MSME credit growth moderated amid global uncertainty, while early-stage stress surfaced among micro borrowers, manufacturing firms and working-capital loans

India to ask US for relief from Section 301 probes as trade talks resume

The two nations reached an agreement on a trade pact earlier this year before the US Supreme Court struck down President Donald Trump's sweeping reciprocal tariffs

India's industrial output grows 4.9% in April under new base year series

India's industrial output rises 4.9% in April under new IIP series, driven by manufacturing and capital goods growth