Page 2 - Indian Economy

Govt likely to retain 4% inflation target for RBI, seeks feedback

The Reserve Bank of India currently aims to keep inflation anchored around 4%, the mid-point of a 2%-6% range mandated by the government

US tariffs, shifting metrics and the risks facing India's economy in 2026

As the US disrupts global trade and India pushes major trade deals, 2026 will test whether reforms, new economic measures and shifting geopolitics can sustain India's growth momentum

Goldilocks phase, reforms glide path to spur Indian economy in 2026

India, the world's fourth largest economy, is set to maintain the 'goldilocks' phase with tailwinds of good growth, low inflation and robust banking performance as well as reform initiatives poised to sustain the economic pace witnessed during 2025. Propelling the themes of ease of living and ease of doing business, the BJP-led Union government's next Budget is expected to unveil new measures to spur capital expenditure and private funding, making the country a more attractive investment destination amid tariff and geopolitical uncertainties. Real GDP growth accelerated through successive quarters, reaching 8.2 per cent in Q2 of 2025-26, while retail inflation slipped below the Reserve Bank's lower tolerance band of 2 per cent towards the close of the year. A government note said that, with a GDP of USD 4.18 trillion, India has surpassed Japan to become the world's fourth-largest economy and is poised to displace Germany from the third-largest rank in the next 2.5 to 3 years, with a

Pre-Budget meeting: Reforms to stay on top of agenda, signals PM Modi

Ahead of the Budget, Prime Minister Narendra Modi told economists that policymaking must stay aligned with India's 2047 vision, calling for mission-mode reforms and long-term growth focus

India's banks are healthier, but the next stress point is already visible

While banking is stable and resilient, it needs to evolve and adjust to the changing dynamics of the Indian financial system

India's EV penetration hinges on securing raw materials, key components

Rapid EV adoption has lifted sales, but India's dependence on imported minerals and components exposes deep supply chain vulnerabilities that could slow the electric mobility transition

Blinkit, Zomato tailor quick-commerce for India's tier-2, tier-3 cities

Rising incomes, cheap smartphones and data, and improved roads have begun knitting smaller cities and industrial hubs into the national economy

Centre may set 54.5-55% debt-to-GDP goal for FY27 in Union Budget

While future Budgets will continue to specify annual fiscal deficit numbers, these will now be derived from the debt target rather than serving as the primary target

Yearender 2025: The economy sailed through, but the waters are uncertain

Real GDP growth surprised on the upside in 2025, but weaker nominal growth, trade uncertainty, and soft demand signal a bumpier road ahead

India in talks with US to join Pax Silica silicon supply chain block

After being left out initially, India is now in talks with the US to join the Pax Silica silicon supply chain initiative, with a US official signalling possible entry in early 2026 as the bloc expands

India on track to be among largest regional networks: WTCA's Wang

India is set to emerge as one of WTCA's largest regional networks, with World Trade Centers expanding to around 50 cities as demand for premium offices, logistics and new-age sectors rises

Economy may grow at 7% in FY27 despite trade tensions: CareEdge Ratings

CareEdge Ratings expects 7% growth in FY27, citing a possible US-India trade deal, low inflation and strong capex, while warning US tariffs could weigh on goods exports

New GDP series to improve informal sector estimates, add double deflation

India's revamped GDP series will use richer data and double deflation to better capture the informal economy, address IMF concerns and improve accuracy from 2026

China's growth shows why government support should be aimed at new starters

China's growth highlights the need for India to shift policy support towards new firms, boost manufacturing, R&D spending, and empower states and cities to drive entrepreneurship and competitiveness

Knowledge most powerful tool for India to become $5 trn economy: Gadkari

Knowledge is the most powerful tool for India to become a USD 5 trillion economy and the third largest economy in the world, Union Minister Nitin Gadkari said on Monday. Speaking at an event in the Indian Institute of Technology Bombay, he said the future of any country is based on the type of futuristic technology it possesses. "The IITs and its students have have a great contribution towards the country's development and progress. While working in the government, if we face any challenge, we refer it to the IITs first. The credibility of IITs is so good that the solution we get is widely accepted. In a nutshell, you are the capital of knowledge," the Union minister said. "The progress of the country, resources, technologies are important but what is more important is the futuristic technology and knowledge. The future of any country is based on what type of futuristic technology it possesses," he added. Prime Minister Narendra Modi has put forth a target in the form of a mission

India will surpass Germany to become third-largest economy by 2027: Scindia

Union Minister Jyotiraditya Scindia on Saturday expressed confidence that India will surpass Germany to become the world's third-largest economy by the end of 2027, lauding the polices and institutional reforms ushered in by the Centre under Prime Minister Narendra Modi. Scindia was addressing the YEF Bharat Summit 2025' organised by the Young Entrepreneurs Forum Bharat here. He said, India was once known as the golden bird. About 2,000 years ago, India's share in the world's gross domestic product (GDP) was 20 per cent. Under the leadership of Prime Minister Narendra Modi, India will move forward with this vision and emerge as a star on the global stage. India's economy has leapt from the 10th position 12 years ago to fourth, leaving behind Japan, he said. By the end of 2027, we will surpass Germany to become the world's third-largest economy, asserted the minister. In the race for economic development, India has already surpassed the country that tried to rule it for 200 years, h

Why China rose and India lost ground in the global middle-class map

An unambitious elite spoiled by finance - plus a working class held back by inadequate education and inequities of caste and gender - are stymying the emergence of a global middle class in India

Weak regulation hurt public policy in 2025; fixing it is 2026's big task

From aviation to finance, regulatory failures marked India's economy in 2025, exposing weak state capacity and the urgent need to redesign how regulators function

GST rate cuts likely to keep driving consumer demand for some quarters

Consumer companies say that demand has already started to see some positive impact

Centre mandates risk registers, umbrella geotech study in tunnel projects

Authority is accountable at every step of tunnel projects, guidelines say