Page 24 - Indian Economy

India's FY26 GDP growth likely to be 6.4-6.7% amid strong demand: CII

The Indian economy is expected to grow by 6.4-6.7 per cent during the current financial year driven by strong domestic demand, even as geopolitical uncertainty poses downside risks, CII President Rajiv Memani said on Thursday. Addressing his first press conference after taking over as the CII president, Memani observed that factors including a good monsoon forecast, and enhanced liquidity emanating from the Reserve Bank's CRR cut, and interest rate reduction will support the country's economic growth. Last month, the central bank announced slashing Cash Reserve Ratio (CRR) by 100 basis points, which will unlock Rs 2.5 lakh crore liquidity to the banking system for lending to productive sectors of the economy. Benchmark interest rate was cut by 50 basis points to 5.5 per cent. "We expect (economic growth in) a range of 6.4 to 6.7 per cent," Memani said in response to a question on CII's gross domestic growth (GDP) forecast for India during 2025-26. Observing that there are some obvi

India's industrial strategy is feeding big business, but not growth

Growing business concentration is helping big business, but not the economy

Patchy rural recovery and a weak capex weigh on Q1 growth outlook

Urban demand continues to face headwinds and though rural demand is accelerating, it is still patchy, reckoned several economists

Capex rises 54% in Apr-May FY26, RBI dividend lifts revenue: CGA data

Government capex rose 54 per cent in April-May FY26 as RBI dividend boosted non-tax revenue and kept the fiscal deficit at a 28-year low for the two-month period

Fiscal deficit slips to 0.8% of full-year target at May-end 2025: CGA data

The fiscal deficit, or gap between the government's expenditure and revenue, had touched 11.9 per cent of the Budget Estimates (BE) for 2025-26 or Rs 1.86 trillion in April

Investment depression result of Modi govt's policies of suppression: Cong

The Congress on Saturday said the country's economic and investment growth is sluggish due to the Narendra Modi government's "policies of suppression and oppression". In a post on X, Congress general secretary, communications, Jairam Ramesh said India's economic growth "stubbornly refuses" to accelerate at the desired and perfectly feasible rate. The most important reason for this failure, he said, is that private corporate investment continues to remain sluggish in spite of the generous tax cuts in September 2019 and the PLI (production-linked incentive) cash handouts. Ramesh said the Modi Government's own survey indicates that private sector capital expenditure may well be 25 per cent lower in 2025-26 as compared to the previous year. "Informed analysts have opined that while banks are willing to lend, companies are unwilling to borrow since the investment environment is not seen to be conducive to expansion. "Growing demand creates a climate for investment. There are undoubtedl

Tea exporters cautiously optimistic as Israel-Iran ceasefire lifts demand

With Iran-bound orders resuming and auction prices rising, Indian tea producers and exporters remain hopeful even as shipments move slowly

India's economy to hold top spot for growth, but weaknesses remain: Poll

Private sector spending is still trailing far behind, and analysts generally agree the economy is still failing to create enough quality jobs for its large young population

India on track to be $5 trn economy by 2027 despite global risks: Goyal

Union Commerce and Industry Minister Piyush Goyal on Tuesday said India is firmly on track to become a USD 5 trillion economy by 2027 despite global turbulence, driven by a collective national effort and strong leadership under Prime Minister Narendra Modi. Speaking at a virtual session organised by the Merchants' Chamber of Commerce and Industry (MCCI), Goyal also hailed the government's decade-long economic reforms as transformational rather than incremental. "We are well on track to achieve the USD 5 trillion economy goal in the next three years. This will be the first milestone on our journey to 'Viksit Bharat' by 2047," Goyal said. Taking note of the global economic volatility and geopolitical headwinds, the minister said India must navigate turbulent waters with unity and determination. "Great economies aren't built in calm waters. This is India's time. We must seize the moment and work together to claim our rightful place among the world's leading nations," he said. Goyal .

Credit card spends up 14.5% to ₹1.89 trn in May 2025; HDFC, SBI lead

Spends rose to Rs 1.89 trillion in May 2025 with 2.7 per cent M-o-M growth, supported by strong card issuances and led by HDFC Bank, SBI Cards and ICICI Bank

Without structural changes to economy, India risks its demographic dividend

Migration from low- to high-productivity geographical regions and industrial sectors must also be promoted and supported

Indian carriers hit by Iran-led airspace closures after US base strike

Air India, IndiGo and others face rerouting and cancellations as airspace closures across West Asia after Iran's missile attack impact routes to Europe and North America

Private sector business activity rises to 14-month high in June: PMI data

Flash PMI rose to 61, up from a downward revised figure of 59.3 in May

Yield on AAA-rated PSU bonds breaches 7% as long-term rates firm up

Notably, REC Limited raised ₹2,865 crore through 10-year bonds at a coupon rate of 7.06 per cent

India's outward FDI declines to $2.83 billion in May, shows RBI data

India's outbound FDI declined in May as equity and guarantees fell sharply while debt commitments surged compared to last year and the previous month

Statsguru: Turmoil for India as oil price rises amid Iran-Israel conflict

Any move by Iran to restrict shipping there could escalate prices further, intensifying pressure on energy-importing nations like India

Core sectors' growth plunges to a 9-month low of 0.7% in May 2025

Electricity generation contracted for the first time in nine months, with a 5.8 per cent drop that marked the sharpest downturn since June 2020

India's core sector growth plunges to nine-month low of 0.7% in May

India's eight core sectors' growth slowed down to 0.7 per cent, lowest in nine months, in May 2025 against 6.9 per cent in the same month last year, according to the latest government data released on Friday. The previous low pace was recorded in August 2024 when the output had contracted by -1.5 per cent. In April this year, the growth in output of these key infrastructure sectors were recorded at 1 per cent. The output of four key sectors -- crude oil, natural gas, fertiliser and electricity -- recorded a negative growth in May. However, refinery products and cement output recorded a positive growth. During April-May this fiscal, the eight sectors expanded by 0.8 per cent against 6.9 per cent during the same period last fiscal.

India seeks tighter container safety, cargo disclosure norms in IMO meet

The development comes at the heels of IMO's ongoing session of the Maritime Safety Committee, where India brought up the recent sinking of the Liberian-flagged vessel MSC ELSA 3

AWS plans to add $23 bn to India's GDP by 2030, says Sandeep Dutta

AWS to invest $12.7 billion in India by 2030 as part of its digital infrastructure expansion and AI integration, supporting over 1.31 lakh jobs annually across sectors