Page 2 - Indian Economy

India's April-May fiscal deficit at 9.6% of 2026-27 target: Govt data

India has set the fiscal deficit target for 2026-27 at 4.3% of GDP, or ₹16.96 trillion

Remain alert to external, domestic risks: RBI governor Sanjay Malhotra

Preserving financial stability more important than ever, says RBI governor Sanjay Malhotra

India's industrial output growth hits five-month high of 5.1% in May

Industrial output growth rose to 5.1 per cent in May as electricity generation strengthened and the government adopted Output-PPI for the new IIP series

Steady, stable as she goes: India and the economic fallout of Gulf conflict

The Gulf conflict tested one kind of resilience; the years ahead will test others. India met the first test in good order. That is a reason for quiet confidence - and for getting on with the next

Goldman Sachs lifts India GDP forecast to 6.8% for 2026 after US-Iran deal

The brokerage raised India's GDP forecast, while cutting its inflation estimate to 4.4% and current account deficit forecast to 1.1% of GDP, on falling crude oil prices after the US-Iran peace deal

Flash PMI growth eases to 57.4 in June as demand and hiring lose momentum

The HSBC Flash India Composite PMI Output Index fell to 57.4 in June from 59.3 in May, as demand, hiring and business optimism softened across both key sectors

Spending on experiences to outpace physical goods in India: Report

Indian households are expected to increase spending on experiences faster than physical goods through 2030, with hotel accommodation emerging as the fastest-growing category

Best of BS Opinion: Beyond headlines and between the lines

From IPOs and exports to AI, nutrition and politics, the deeper story lies not in headline numbers but in the strength of underlying structures

Shifting composition: Dependence on services exports is increasing

Services exports are driving India's trade growth and resilience, but stronger manufacturing output remains essential for broad-based job creation and sustainable growth

Parl panel to study India's economic conditions amid global uncertainties

As conflicts and geopolitical uncertainties around tariffs cloud domestic growth, a key parliamentary committee has decided to examine the evolving economic condition of the country. According to a Lok Sabha bulletin, the Standing Committee on Finance has chosen 'Evolving Economic Conditions in the Country' as an additional subject for detailed examination during the year 2025-26. Parliamentary panels select their subjects soon after they are constituted. But they are at liberty to select additional subjects keeping in mind evolving circumstances. Indian economy is estimated to have grown at 7.7 per cent in 2025-26 (April-March), with a robust 7.8 per cent growth in the January-March quarter. India's GDP had grown at 7.1 per cent in the 2024-25 fiscal year. However, the RBI estimates GDP growth to slow to 6.6 per cent in current fiscal year as the ongoing conflict in West Asia pushes up cost of fertiliser and fuel globally. India is a net importer of both crude oil and fertiliser.

Why El Nino could become India's next growth and inflation challenge

With rainfall turning weaker and El Nino risks rising, India could face pressure on farm output, food inflation, rural demand and overall economic growth in FY27

'Next 20 years will mirror geopolitical turbulence of 1925-1945,' warns CEA

V Anantha Nageswaran said businesses must prioritise resilience over efficiency as geopolitical tensions rise, while arguing that AI will increase, not reduce, human cognitive load

India must use West Asia respite to pursue overdue policy reforms

An end to the West Asia conflict augurs well for India, but it should not lull the government into policy inaction

Profits are rising across corporate India. Why isn't investment taking off?

Listed companies' net income is nearing 6 per cent of GDP, but a lack of corresponding investment in factories and other productive assets is limiting job creation and widening inequality

Focus of manufacturing policy should be on new startups and tech growth

Perhaps the most important development challenge India faces at present is the revival of manufacturing growth and a greater prospect of achieving the 25 per cent target, articulated first in 2012 and

West Asia conflict: From oil to inflation, how did the crisis impact India?

The West Asia crisis affected India through higher oil prices, pressure on the rupee, weaker trade, rising aviation costs and inflation. Here's how the economy absorbed the shock

US-Iran peace deal may help boost India's exports, stabilise rupee

The announcement that the US and Iran have finalised a deal to end their 107-day conflict and reopen the Strait of Hormuz is expected to boost India's exports to West Asia, which was severely impacted by the hostilities, spur manufacturing activity and help stabilise the rupee, according to exporters and experts. They said the announcement, if implemented successfully, would reduce pressure on India's import bill, ease inflationary covers and create a more conducive environment for trade. The peace agreement would be signed on June 19 in Switzerland. The US and Iran have reached a peace deal to end a four-month war that disrupted global energy supplies, pushed oil prices above USD 100 per barrel, and brought the Middle East to the brink of a wider regional conflict. For India, which relies heavily on West Asia for crude oil, LPG and LNG supplies, the deal promises relief from high energy prices, pressure on the rupee, and inflation risks that intensified during the conflict, econom

India's GDP growth to slow to 6.6% in FY27 amid global headwinds: BMI

India's GDP is likely to grow at 6.6 per cent in the current fiscal as compared to 7.7 per cent in FY26, on weaker investments and consumption growth and trade shocks from the West Asia crisis, BMI, a Fitch group company, said. According to government data released last week, GDP growth in FY26 accelerated to 7.7 per cent from 7.1 per cent in FY25, supported by healthy consumption and robust investment activity. BMI expects the rupee to trade in the range of 95.1 against the US dollar this calender year. It said the rupee's depreciation from its 87 average level in 2025 will support export competitiveness, offsetting the drag on GDP from the Iran conflict's terms-of-trade shock. The GST reforms implemented in September 2025 caused a consumption boom in December quarter FY26. Thereafter, consumption growth fell by 1.1 percentage points to 7.1 per cent y-o-y in March quarter FY26. "Looking ahead, we continue to expect 6.6 per cent GDP growth in FY2026/27. Our projection represents a

Real cost of freebies is the erosion in quality of public spending

State debt and deficits do not capture the damage that doles inflict on the quality of public spending

India 'bright spot' in global economy despite uncertainties: Chandrasekaran

India continues to be a "bright spot" in the global economy despite geopolitical uncertainties, and offers "strong growth" as well as a very large market, even as consumer preferences and spending patterns are undergoing constant change, Tata Consumer Products Chairman N Chandrasekaran said on Wednesday. Addressing shareholders of the Tata Group's FMCG arm Tata Consumer Products Ltd (TCPL) at its 63rd Annual General Meeting, Chandrasekaran said the world today is being reshaped by geopolitical shifts, supply chain disruptions and realignments, energy transition and rapid advancements in Artificial Intelligence. This year started on an optimistic note with key developments such as the landmark trade agreement with the European Union and finalisation of the framework for an interim bilateral trade pact between India and the United States. However, concerns over economic slowdown, weakening output and inflationary pressures resurfaced after the outbreak of the West Asia conflict late .