Page 17 - Indian Economy

Services sector growth hits 15-year high in August on robust demand

India's services PMI rose to 62.9 in August, the steepest expansion since 2010, driven by strong demand, new orders, and resilient job creation amid rising costs

Despite hardening corp bond yields, India Inc not warming up to bank loans

Despite higher bond yields, companies prefer debt markets over bank loans as lending rates remain elevated and cash reserves cushion capex needs

Two-rate GST structure approved; new rates to kick-in from Sept 22: FM

GST on buses, trucks, and ambulances has been reduced to 18% from 28%. Uniform rate of 18% on all auto parts has been decided

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 current account deficit narrowed to 0.2% of GDP in Q1 FY26

India's CAD narrowed to $2.4 billion in Q1FY26 from $8.6 billion a year ago as remittances surged 18% and services exports rose, offsetting a wider merchandise trade deficit

India's GDP growth likely to stay strong in Q2FY26, say economists

Economists say the effect of a low deflator and low base is likely to boost expansion

Govt launches first Biofoundry Network with 21 facilities across India

India unveiled its first Biofoundry Network with 21 facilities nationwide to drive biomanufacturing, support start-ups, reduce imports and advance the $300 billion bioeconomy target for 2030

India's rise as China's economic alternative stalls under Trump's tariffs

A lurch in policy has shaken the India-U.S. economic alliance against China, leaving India little choice but to consider reversing its own strategy

On track to achieve fiscal deficit target of 4.4% for FY26: DEA Secy Thakur

Dispelling fears that the government may miss its ambitious fiscal deficit target of 4.4 per cent for the current financial year, Economic Affairs Secretary Anuradha Thakur on Saturday said the government is on track to meet the goal set in the Budget despite temporary mismatches which may have been exhibited in the latest monthly numbers. The statement from the Department of Economic Affairs (DEA) Secretary assumes significance in the light of Centre's fiscal deficit rising to 29.9 per cent of the full-year target at the end of July as against just 17.2 per cent of the Budget Estimates (BE) in the same period of the last financial year. "So this question (of achieving the target) has been coming up because of the latest numbers. I would like to say that quarter-by-quarter or month-by-month assessments of fiscal deficit numbers may not give a correct picture because of temporal mismatches, which may come in on the receipt and expenditure side. "On the overall fiscal deficit numbers,

Economy spurts 7.8% in Q1 FY26 as manufacturing, agri, services shine

India's GDP grew 7.8% in Q1 FY26, a five-quarter high led by manufacturing and services, though US tariffs pose risks to sustaining growth momentum

US tariffs pose downside risk to aggregate demand, says RBI report

Headline inflation to remain significantly below target this year; S&P upgrade bodes well for yields

Consumption demand becomes broadbased; govt capex boosts investment

NSO data shows broad-based demand recovery with rural growth, higher wages, and strong public capex

Centre to launch first bidding round under Deepwater Mission soon

National Deepwater Mission aims to boost hydrocarbon output, cut imports

Fiscal deficit at 29.9% of budget estimates in April-July FY26: CGA data

April-July data shows rising capex and RBI dividend boost, but tax revenue contraction widened India's fiscal deficit

PNB MetLife CIO suggests investment themes amid trade risks, high valuation

India's structural strengths (6.5 per cent GDP growth, easing rates, tax cuts, GST normalisation, and rural demand recovery) support a H2FY26 rebound, said Sanjay Kumar

Indian economy likely grew solidly before Trump tariffs hit outlook

India's gross domestic product probably expanded 6.7 per cent in the three months to June, the first quarter of the financial year, according to the median estimate in a Bloomberg survey

India's economy resilient but US trade policies a risk: RBI bulletin

Average headline inflation, meanwhile, is seen remaining significantly below the central bank's target of 4 per cent this financial year, according to the RBI bulletin

Gen-next economic reforms: Big ticket projects, slashed compliances

These include an ambitious push for big-ticket projects, projecting India as a destination for major investments, and slashing the compliance burden on enterprises and citizens

Tariff fix key to India-US trade deal negotiations, govt remains hopeful

Multi-pronged strategy in the works to help exporters