Page 5 - Latest Updates on New GDP series

Indian economy contributing more to global growth than US: RBI Guv Malhotra

RBI Governor Sanjay Malhotra says India contributes 18% to global GDP versus US share of under 11%, retains FY26 growth forecast at 6.5% despite Trump's 'dead economy' remark

US tariffs to have 'negligible' impact on India's GDP, exports: Study

The 25 per cent tariffs on Indian goods announced by US President Donald Trump will have "negligible" impact on the country's GDP as only USD 8.1 billion of exports to America might get affected, according to a PHDCCI study released on Wednesday. The tariffs announced by the US are likely to come into effect on August 7, 2025. The paper, released by the PHD Chamber of Commerce and Industry (PHDCCI), also recommends a series of measures to mitigate the impact of US tariffs. "Our analysis indicates that there will be an estimated impact of only 1.87 per cent on India's total global merchandise exports and a negligible 0.19 per cent on India's GDP as a result of a 25 per cent tariff announced by the US on India," said Hemant Jain, President, PHDCCI. The study said the total potential export impact is estimated at USD 8.1 billion based on 2024-25 merchandise exports of USD 86.5 billion (1.87 per cent of India's total global export). Among other sectors, the study said the levies would

Fitch cuts GDP growth projections to 6.3%; sees mild impact of US tariffs

Fitch Ratings on Friday cut India's GDP projections for the current fiscal to 6.3 per cent and said it expects a limited direct impact of higher US tariffs on Indian corporates. In its Global Economic Outlook in April, Fitch had estimated India's GDP growth at 6.4 per cent for 2025-26. "We expect India's GDP growth of 6.3 per cent and robust infrastructure spending to underpin healthy demand for cement and building materials, electricity, petroleum products, steel, and engineering and construction (E&C) companies during FY26," Fitch said in its India Corporates Credit Trends report released on Friday. Fitch Ratings expects credit metrics to improve for its rated Indian corporates in the financial year ending March 2026, as wider EBITDA margins offset their high capex intensity. On the impact of US tariffs, Fitch said it expects a "limited direct impact" on its rated Indian corporates from higher US tariffs due to generally low to moderate US export exposure. However, second-order

Economy to grow at 6.5% in FY26 despite global uncertainties: EAC-PM Chair

The Indian economy is expected to grow at 6.5 per cent in the current financial year, despite geo-political tensions and trade policy uncertainties, Economic Advisory Council to the Prime Minister (EAC-PM) Chairman S Mahendra Dev said on Tuesday. In an interview with PTI, Dev further said that domestic growth will be driven by low inflation, resulting from good monsoon and benign interest rate regime, triggered by three back-to-back rate cuts by the Reserve Bank of India. "There are significant global headwinds like the twin shocks of geo-political tensions and trade policy uncertainties. "However, the Indian economy is resilient and continues to be the fastest growing country among large economies," the eminent economist said. According to Dev, high-frequency indicators for the first two months of 2025-26 indicate resilient performance of the domestic economy. "A 6.5 per cent of GDP growth for FY26 is feasible despite global uncertainties. India's medium-term growth prospects see

Industry's share in GDP declining, but big business growing: Cong

The Congress on Monday accused the Modi government of focussing on big businesses and alleged that the growth of such business groups is not accelerating economic growth. In a post on X, Congress general secretary (communications) Jairam Ramesh said the industry's share in GDP has been declining, just as concentration in the industry is increasing and this, in turn, is one of the main causes of inflation due to rising prices. "While tall claims continue to be made by the PM and his drumbeaters on industrial growth, three facts are incontrovertible - Industry's share in GDP has been declining, just as concentration in industry has been increasing. This has raised prices for consumers and is one of the main sources of inflation," he claimed in his post. Ramesh said within the 'G25' in Indian business, there is a 'G5' whose increasing share is coming at the expense of the remaining 'G20'. "Big business groups are growing even bigger but that is not acclerating economic growth-- in fac

Looking beyond Europe: Nato defence spending hike could impact exporters

The Nato decision is a response to fears of security threats from Russia, which is enhancing its war capabilities and apprehensions that the US cannot be relied upon to defend Europe

India's external debt rises to $736 billion, 19.1% of GDP, says RBI

Short-term debt to total debt ratio dips to 18.3

Without structural changes to economy, India risks its demographic dividend

Migration from low- to high-productivity geographical regions and industrial sectors must also be promoted and supported

India-China friction has not impacted AIIB's functioning, says VP Pandey

Frictions between India and China have not affected the functioning and growth of the Asian Infrastructure Investment Bank (AIIB), where both countries are the top two investors, the bank's Vice President of Investment Solutions Ajay Bhushan Pandey has said. In a detailed interview with PTI Videos here, Pandey, a former finance secretary and CEO of Aadhaar, sought to dispel the impression that the AIIB was a Chinese bank and said it truly emerged as a multilateral development bank (MDB) with well-established governing structures. According to the bank's official data, China is the largest shareholder of the AIIB with 26.54 per cent voting shares. India is the second-largest shareholder with 7.58 per cent, followed by Russia with 5.9 per cent and Germany with 4.1 per cent. In his nearly hour-long interview, Pandey addressed a range of questions, including whether India-China tensions and the absence of influential countries like the US and Japan impacted the bank. Pandey, who took o

Viksit Bharat by 2047 goal: Are we on track for tech advancement?

Public support for innovation must shift towards radical improvements in higher education and financial support for startups and new innovators

Corporate India's revenue growth underperforms GDP expansion again

The combined revenues of BS1000 companies grew by 6.4 per cent in FY25 against 9.8 per cent growth in GDP at current prices

Avoiding the growth mirage: Reforms must go beyond capital infusion

Despite some setbacks and global uncertainty, the economy has shown remarkable resilience and is poised to surpass Germany before the end of the decade to become the third-largest

A fresh start: Base revision will better inform policy decisions

The expected revision will not only change the base year but also include new data sources, which should help make these indices more robust

Datanomics: Population burden limits India's economic growth gains

The gap between the GDP and individual prosperity is striking, especially when compared with other major economies

Pakistan's debt increases to PKR 76,000 billion by end-March 2025

Pakistan's debt has increased to PRs 76,000 billion in the first nine months of the current fiscal year, according to the economic survey, which indicated that the cash-strapped country's economy is likely to grow by 2.7 per cent this year. Finance Minister Muhammad Aurangzeb, who released the Economic Survey 2024-25 Monday, said Pakistan's economy has been on the path to recovery for the last two years, and the process was further stabilised and strengthened in the current fiscal year. The survey is a key pre-budget document highlighting the economic performance of the government in the fiscal year 2024-25. Pakistan's financial year begins on July 1. In the first nine months of the current fiscal year, the government's debt increased to PRs 76,000 billion, including PRs 51,500 billion from local banks and PRs 24,500 billion in loans from external sources, according to the document, which comes a day before the presentation of the budget. Addressing a press conference after launchi

Alternative data sources help in 'proactive intervention' for growth: CEA

Suman K Bery, vice-chairperson of NITI Aayog, told the workshop conventional data should be integrated with alternate sources while ensuring quality

Govt has scope to increase capital expenditure this fiscal, says ICRA

Capital expenditure for April 2025 surged by 61 per cent year-on-year to ₹1.6 trillion

The rebound: Consumption picks up in FY25 on rural demand, shows NSO data

Dharmakriti Joshi, chief economist, Crisil says that consumption growth outpaced GDP, primarily driven by robust rural demand supported by a strong agricultural sector.

Datanomics: India closes in on Japan to be fourth-largest economy this year

India is likely to overtake Germany in 2028 as the third largest economy in the world, according to projections by the IMF

Govt achieves fiscal deficit target of 4.8% for FY25, shows data

The government has met its fiscal deficit target of 4.8 per cent of the GDP for 2024-25, according to the data released by the Controller General of Accounts on Friday. The fiscal deficit for the previous financial year works out to be Rs 15,77,270 crore, nearly the same as revised estimates (Rs 15,69,527 crore) presented to Parliament in February. The economic growth in nominal terms for the fiscal 2024-25 is estimated at Rs 3,30,68,145 crore, according to the GDP data released earlier in the day. As per the CGA data, the government managed to collect Rs 30.36 lakh crore revenue or 98.3 per cent of the revised Budget Estimates (RE). The central government's expenditure during 2024-25 was Rs 46.55 lakh crore or 98.7 per cent of the RE. The central government's fiscal deficit for 2023-24 was 5.63 per cent of the GDP.