Page 2 - Indian Economy

India's GDP grows 7.8% in Q4 FY26 despite ongoing West Asia crisis

Full-year GDP growth pegged at 7.7%

How India can halt capital flight as trade deficit widens, rupee falls

With the rupee nearing the psychologically important 100-per-dollar mark, RBI Guv Malhotra and PM Modi may need to raise interest rates and offer targeted tax incentives to stem capital outflows

'India's fiscal deficit may rise to 4.7% of GDP in FY27 amid West Asia war'

India's fiscal deficit may widen to 4.7 per cent of GDP in FY27 as higher oil prices, subsidy costs and revenue risks from the West Asia conflict weigh on finances, writes Aditi Nayar of ICRA

Policy complexity: RBI MPC will have to reckon with several moving parts

With oil prices elevated and monsoon risks looming, the RBI is expected to hold rates steady while reassessing inflation and growth forecasts

India set to bargain hard in trade negotiations with US, UK this week

Trade agreements with the US and the UK could help cushion some of the headwinds while attracting foreign investment at a time when the rupee is under great pressure

Manufacturing PMI rises to 3-month high in May as demand stays firm

Manufacturing activity expanded at its fastest pace in 3 months in May, supported by stronger domestic demand, while input cost inflation remained elevated amid continued geopolitical uncertainties

Manufacturing PMI hits 3-month high of 55.0 in May on resilient demand

Input cost inflation remained among the strongest seen in the past four years, driven by higher energy, fuel, material, and transportation costs amid the ongoing conflict in West Asia

FinMin calls for policy agility as economy shows 'cautious resilience'

The finance ministry on Saturday said strong domestic fundamentals support growth, but rising oil prices, a weaker monsoon and global uncertainty warrant continued policy vigilance

Iran deal may ease oil stress, but won't plug India's capital or AI gaps

While stabilising the currency may help contain the current crisis, India's ability to attract global capital will remain muted

How extreme summers are starting to weigh on India's economic growth

Longer and more intense heatwaves are affecting jobs, farm output, electricity demand and health costs, raising concerns that India may be underestimating their economic impact

Weekly policy watch: Forex reserves, deposits, Marco Rubio visit in focus

India's policy focus this week will be on forex reserves, banking deposit growth and high-level India-US talks amid global uncertainty and trade concerns

Best of BS Opinion: RBI's surplus transfer will not ease fiscal pressure

Hello and welcome to BS Opinion, a wrap of editorials and columns on today's Opinion page.

Earnings growth matters more than valuation multiple: Anish Tawakley

Earnings growth matters more than PE compression in long-term wealth creation, says DSP MF CIO

A big push in economics: Special times call for special initiatives

The last time the domestic private sector achieved a one-year gain of net fixed assets above 20 per cent in nominal terms was 2009-10

Manufacturing drags down India's private sector activity in May: Flash PMI

India's pvt sector activity remained firmly in expansion territory in May, though growth in new orders, exports, employment and business activity softened marginally, HSBC's flash PMI survey showed

IMF backs targeted relief over broad subsidies amid oil price surge

The multilateral institution has urged governments to avoid broad-based subsidies and instead adopt targeted fiscal measures to manage inflation and protect vulnerable households

A look at India's measures to cushion oil shock amid soaring prices

From curbing gold imports and raising fuel prices to tightening currency-market rules, authorities have stepped up efforts to conserve dollars, with the rupee hitting a new low Tuesday

Weekly policy watch: Core sector, bank credit, forex data in focus

India's macro calendar will be led by core sector, PMI, bank credit, deposit, and forex reserves data, while PM Modi's Europe visit will keep trade ties in focus

States' capex utilisation dipped to 77% in FY26 despite higher outlay

The state-wise picture also reveals a sharp churn at the top and bottom relative to the last financial year

North America, NE Asia, Latin America make up over 35% of India's exports

North America, North-East Asia, and Latin America together accounted for over 35 per cent of India's merchandise exports, which stood at USD 441.78 billion in 2025-26, reflecting a gradual shift towards a more diversified and resilient global trade structure, according to commerce ministry data. Exports to East Africa increased 13.7 per cent to USD 12.6 billion, accounting for 2.9 per cent of India's exports, while North Africa rose 14.8 per cent to USD 8 billion with a 1.8 per cent share. "India's exports in 2025-26 reflected increasing geographic diversification, with strong growth across Asia, Africa, and Latin America even amid global trade disruptions," an official said. According to the data, while North America continued to dominate India's export basket with exports of USD 97.7 billion accounting for 22.1 per cent of total exports, growth remained relatively moderate at 1.3 per cent year-on-year, that indicates to a mature but resilient demand base. The strongest momentum c