Page 4 - Gdp Growth

GST revamp may trim revenue but fiscal impact limited, says BofA Securities

GST Council approves two-slab system from September 22; BofA Securities says impact on GDP and government finances will be small, while consumption may get a boost

India grew 7.8% in Q1 despite global economic challenges: PM Modi

In a veiled rebuttal to the 'dead economy' jibe, Prime Minister Narendra Modi on Tuesday said the Indian economy grew 7.8 per cent in the first quarter, surpassing all expectations despite global uncertainties and challenges driven by economic self-interest. Speaking at the Semicon India 2025 conference here, he said GDP growth in April-June was better than 'every expectation, hope and estimate'. Indian economic performance came amidst global uncertainties and "aarthik swarth se paida hue chunautiya hai" (challenges stemming from economic self-interest), he said. "Once again, India has outperformed every expectation, every estimate, and every forecast," Modi said. While economies around the world are facing concerns and challenges driven by economic self-interest, India has achieved a growth rate of 7.8 per cent. Modi emphasized that this growth is visible across all sectors -- manufacturing, services, agriculture, and construction -- with enthusiasm evident everywhere, and added

Datanomics: India's GDP surprise driven by deflator effect across sectors

The sharp uptick was largely due to the impact of GDP deflators, which remained unusually soft, particularly in the primary and secondary sectors

India's strong GDP growth fails to boost equity markets amid US tariffs

GDP in India grew at 7.8 per cent in April-June quarter in real terms, but nominal growth, which represents output at current market prices, fell to 8.8 per cent from 10.8 per cent in last 3 months

BS Infra Summit: India's rise as a global air travel hub takes shape

For a lasting economic momentum and growth, India should build world-class, integrated infrastructure that matches its ambition

Fitch affirms India ratings at BBB- with stable outlook on robust growth

Strong demand and solid external finances support rating; high debt and fiscal gaps remain key constraints, Fitch says

India in position to help lift the world out of slow growth: PM Modi

Prime Minister Narendra Modi on Saturday said that guided by the mantra of reform, perform, and transform, India is in a position to help lift the world out of slow growth. Addressing the Economic Times World Leaders Forum here, the Prime Minister said India will soon become the world's third-largest major economy, and is on the way to becoming a developed nation by 2047. Observing that reform is a matter of commitment and conviction for his government, Modi said the next-generation GST reform process, which seeks to make the law simpler, will be completed before Diwali and bring down prices. The Prime Minister also asked the private sector to increase investment in research and development in sectors like clean energy, quantum technology, battery storage, advanced materials and biotechnology. This will strengthen the resolve of a developed India. "It is not in my nature to be satisfied with what has already been achieved. The same approach guides our reforms," he said. "For us,

Tariff worries? Allocate 40-50% to Sensex or Nifty basket: G Chokkalingam

The continued normal monsoon, falling inflation, and the S&P Global Ratings upgrade also contributed to the market recovery despite the US tariff threats, said Chokkalingam

India's GDP growth likely at 6.3% in FY26, below RBI estimates: SBI report

India's economic growth is expected to be lower at 6.3 per cent this fiscal compared to the RBI's projection of 6.5 per cent, a SBI Research Report said on Thursday. The report pegged the first quarter GDP estimate at around 6.8-7 per cent, mainly due to muted private capex. India's economy is likely to grow at 6.3-6.8 per cent in 2025-26 on the back of strong macroeconomic fundamentals, though strategic and prudent policy management will be required to navigate global headwinds, as per the latest Economic Survey. The country witnessed a muted growth at 6.5 per cent in 2024-25 (April 2024 to March 2025), down from 9.2 per cent in the previous year. Sharing the quarterly growth estimates, the report said the Indian economy is expected to grow at 6.5 per cent in the second quarter and at a lower rate of 6.3 per cent in the next quarter. In the fourth quarter of the current financial year, the GDP growth will be lowest at 6.1 per cent, it added. Compared to the SBI report, the Reser

US tariffs may lower India's growth by 30 bps over a year, says HSBC report

Along with the 25 per cent tariff in effect, the US had imposed an additional 25 per cent penalty on India for importing crude from Russia

Icra pegs Q1 GDP growth rate at 6.7% on higher govt capex, exports

The Indian economy is expected to grow at 6.7 per cent in April-June period of current fiscal, higher than 6.5 per cent a year ago, on the back of higher government capex and exports, rating agency Icra said on Tuesday. This projection also outpaces the RBI's Monetary Policy Committee's (MPC's) forecast of 6.5 per cent growth in the June quarter. India's economy grew 7.4 per cent in March quarter of FY25. Official data for FY26 Q1 GDP is scheduled to be released on August 29. Icra Chief Economist Aditi Nayar said investment activity held up in Q1 FY2026 was boosted by the front-loading of government capex. Although, this admittedly came on a low base amidst the heightened uncertainty owing to geopolitical tensions and tariff-related developments. "Benefitting from robust government capital as well as revenue spending, upfronted exports to some geographies and nascent signals of improved consumption, the pace of expansion in economic activity in Q1 FY2026 is estimated at 6.7 per cen

India should join RCEP, focus on East Asia for GDP growth: Jeffrey Sachs

Sachs said that India could target 7 per cent GDP growth in the coming decade by focusing on East Asia

Rating upgrade shows reforms paying off, says S&P's Yee Farn Phua

S&P upgrades India's sovereign rating citing strong growth, fiscal discipline, and infrastructure push, while warning against policy reversals and subsidy-heavy spending

India's GDP growth may dip to 6% in FY26 if 50% tariffs imposed: Moody's

Moody's Ratings on Friday said India's GDP growth is likely to slow down by about 30 basis points to 6 per cent in the current fiscal if the US implements 50 per cent tariffs from August 27. However, resilient domestic demand and the strength of the services sector will mitigate the strain on India, Moody's said, adding that India's response to high US tariffs will ultimately determine the effect on its growth, inflation and external position. On August 6, the US announced an additional 25 per cent tariff on all Indian imports, in addition to an existing 25 per cent duty, taking the total duty to 50 per cent effective August 27. The White House said the measure responds to India's continued purchase of Russian oil. "Should India continue to procure Russian oil at the expense of the headline 50 per cent tariff rate on goods it ships to the US, which is currently its largest export destination, we project that real GDP growth may slow by around 0.3 percentage points compared with our

Datanomics: Net exports' contribution to US GDP growth at its peak

Net exports of goods and services contributed 4.99 percentage points to GDP growth in the second quarter of 2025, the highest in the US since at least 1947

RBI's MPC likely to keep repo rate unchanged: Business Standard poll

Respondents expect downward revision in FY26 inflation forecast

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

IMF raises India's GDP growth projection by 20 bps to 6.4% for FY26

IMF revises India's FY26 GDP growth to 6.4%, citing a favourable external environment; global growth also projected higher for 2025 and 2026

Ind-Ra cuts India's FY26 GDP growth forecast to 6.3% on weak outlook

India Ratings & Research (Ind-Ra) on Wednesday trimmed India's growth projection for the current fiscal to 6.3 per cent, citing uncertainties around US tariffs and weak investment climate. Ind-Ra expects GDP in FY26 to grow 6.3 per cent y-o-y, 30bp lower than its earlier forecast of 6.6 per cent made in December 2024. The economy is facing both headwinds and tailwinds, it said in its mid-year economic outlook. "Major headwinds are: i) uncertain global scenario from the unilateral tariff hikes by the US for all countries and ii) weaker-than-expected investment climate. The major tailwinds are: i) monetary easing, ii) faster-than-expected inflation decline, and iii) likely above-normal rainfall in 2025", said Devendra Kumar Pant, Chief Economist and Head Public Finance, Ind-Ra. The Indian economy had grown at 6.5 per cent in 2024-25 (April 2024 to March 2025) Ind-Ra's projections for FY26 are lower than the 6.5 per cent GDP growth projected by the RBI and the Asian Development Bank .

Inflation undershoots, yet risks remain: Rate cuts may spark volatility

The MPC's June 2025 decision to cut the repo rate by 50 basis points - more than expected - surprised markets