Page 2 - Indian Economy

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

FinMin confident of coping with West Asia crisis with adequate fiscal room

The Centre says fiscal prudence and timely interventions have helped India cushion the economic fallout of the prolonged West Asia conflict

Morgan Stanley pegs India GDP growth at 6.7% in FY27

Sustained high oil prices, Morgan Stanley cautioned, could trigger non-linear and progressively larger impacts on growth, as the burden on households and firms intensifies over time.

Moody's slashes 2026 India growth forecast to 6% amid high energy costs

Moody's Ratings on Tuesday slashed India's GDP growth forecast for year 2026 by 0.8 percentage points to 6 per cent on subdued private consumption, capital formation, and industrial activity amid higher energy costs. In its Global Macro Outlook May update, Moody's said over the next six months, the impact from higher energy prices and fuel and fertilizer-related shortages will vary widely across countries, reflecting differences in exposure and resilience. "The global outlook remains highly uncertain amid an increasingly prolonged confrontation and fragile ceasefire between the US and Iran, We estimate growth losses ranging from around 0.8 ppt for India," Moody's said. For calendar year 2027, Moody's slashed GDP growth estimates by 0.5 percentage points to 6 per cent for India, reflecting lingering headwinds that gradually fade as shipping flows stabilise and energy supplies improve, allowing underlying economic activity to recover. Moody's said India is "particularly vulnerable" t

India must replicate Apple story many times over: NITI Aayog's Rajiv Gauba

At the CII Annual Business Summit 2026, Rajiv Gauba said India must move from "prohibited unless permitted" to "permitted unless prohibited" to deepen reforms

Prosperity is both India's ambition and destiny: RBI dy governor Gupta

RBI Deputy Governor Poonam Gupta says India has entered a virtuous cycle of growth and stability, with many states likely to approach high-income levels by 2047

Modi's gold warning sparks big question: Is India facing economic stress?

Gold Buying Could Hurt the Rupee: Why Modi Issued an Unusual Appeal to Indians