Page 25 - Indian Economy

Centre plans support package for exporters hit by Trump's tariffs

The Ministry of Commerce and Industry has proposed measures to ease liquidity for exporters through collateral-free loans and subsidised interest rates

Wheat, Bombs & Fetters: How India fought off US sanctions in the 1970s

Indian audiences are now viewing 'The Hegemonic America Part 3': PL 480. Uranium 235. 50 per cent Tariffs

India's CAD could exceed 1% of FY26 GDP as external risks intensify

Economists forecast India's current account deficit (CAD) will exceed 1% in FY26, citing capital outflows, U.S. tariffs, and a widening trade deficit, despite strong services exports and remittances

GST reforms: Taxation can't be an emotional decision, says FM Sitharaman

Days after the big-bang GST reform announcement, FM Nirmala Sitharaman, at her North Block office on Saturday, spoke at length on a range of issues in an hourlong interaction with Business Standard

13th round of FTA talks from Monday: India, EU hope to fast-track deal

The outcome of this round of negotiation will be crucial in determining the next steps, as both sides weigh the possibility of a political call to break the deadlock on the unresolved issues

Updated industrial classification will help capture new economy data

India's NIC-2025 update to include digital, green, and gig sectors, ensuring accurate economic data, global comparability, and better policy planning

Spurt in consumption to meet fiscal deficit target of 4.4%: Sitharaman

Finance Minister Nirmala Sitharaman has expressed confidence that revenue buoyancy driven by spurt in consumption will take care of the estimated GST shortfall of Rs 48,000 crore following reduction in tax rates on a host of items, and hence there will be no impact on public finances but definitely bolster GDP growth. She also emphasised that consumption boost to be provided by landmark GST reform and better-than-expected first quarter GDP growth number may help in exceeding the projected pace of 6.3-6.8 per cent for FY26. Asked about impact of GST rate cuts on fiscal deficit, Sitharaman said, Rs 48,000 crore financial implication is a static number based on a base year, but when it gets implemented, base situation changes. "So, I think the consumption spurt from September 22 will increase income buoyancy. To a large extent, this Rs 48,000 crore amount we will be able to make it up this year itself. So I don't see an impact on my fiscal deficit or my fiscal management. I will stick

Nominal GDP growth in FY26 may fall short due to benign inflation: CEA

Given the expectation of benign inflation, there may be a shortfall in nominal GDP growth compared to the Budget estimate of 10.1 per cent for the current financial year, Chief Economic Adviser V Anantha Nageswaran said. He expressed optimism about meeting the real GDP growth target of 6.3-6.8 per cent for the current fiscal year despite the US imposing a steep 50 per cent tariff on Indian shipments. Nominal GDP includes changes in prices caused by inflation, reflecting the impact of rising overall price levels, while real GDP is an inflation-adjusted measure that evaluates the value of all goods and services produced in a country during a specific year. Inflation is expected to be low on account of an estimated good kharif harvest and a reduction in prices of around 400 items after landmark GST reforms were approved recently by the GST Council headed by Finance Minister Nirmala Sitharaman. "Some shortfall in nominal GDP growth may be there. I think there is a higher chance of tha

How gaps in governance standards weigh on India's sovereign ratings

Fitch Ratings keeps country at lowest investment grade, citing poor scores in political stability and corruption control

GST rate rejig awakens the ghost of 2017 transition for FMCG players

Firms warn of teething troubles, seek time to rework SKUs and labels

Corporate sector revenues continue to trail India's robust GDP growth

Nominal GDP uses current market prices while real GDP takes constant prices from a base year to adjust for implied inflation in the economy called GDP deflator

No relief for brand M&As, purchases to continue attracting 18% GST

India will continue to impose 18% GST on standalone brand purchases, with no relief for companies involved in brand M&As. Business acquisitions, however, remain exempt under existing GST rules

RBI to conduct 8-day VRRR auction to absorb ₹1.5 trn from banking system

The RBI's VRRR operations are aimed at absorbing surplus liquidity from the system and anchoring short-term rates closer to the policy repo rate

Services sector growth hits 15-year high in August on robust demand

India's services PMI rose to 62.9 in August, the steepest expansion since 2010, driven by strong demand, new orders, and resilient job creation amid rising costs

Despite hardening corp bond yields, India Inc not warming up to bank loans

Despite higher bond yields, companies prefer debt markets over bank loans as lending rates remain elevated and cash reserves cushion capex needs

Two-rate GST structure approved; new rates to kick-in from Sept 22: FM

GST on buses, trucks, and ambulances has been reduced to 18% from 28%. Uniform rate of 18% on all auto parts has been decided

India grew 7.8% in Q1 despite global economic challenges: PM Modi

In a veiled rebuttal to the 'dead economy' jibe, Prime Minister Narendra Modi on Tuesday said the Indian economy grew 7.8 per cent in the first quarter, surpassing all expectations despite global uncertainties and challenges driven by economic self-interest. Speaking at the Semicon India 2025 conference here, he said GDP growth in April-June was better than 'every expectation, hope and estimate'. Indian economic performance came amidst global uncertainties and "aarthik swarth se paida hue chunautiya hai" (challenges stemming from economic self-interest), he said. "Once again, India has outperformed every expectation, every estimate, and every forecast," Modi said. While economies around the world are facing concerns and challenges driven by economic self-interest, India has achieved a growth rate of 7.8 per cent. Modi emphasized that this growth is visible across all sectors -- manufacturing, services, agriculture, and construction -- with enthusiasm evident everywhere, and added

Datanomics: India's GDP surprise driven by deflator effect across sectors

The sharp uptick was largely due to the impact of GDP deflators, which remained unusually soft, particularly in the primary and secondary sectors

India's current account deficit narrowed to 0.2% of GDP in Q1 FY26

India's CAD narrowed to $2.4 billion in Q1FY26 from $8.6 billion a year ago as remittances surged 18% and services exports rose, offsetting a wider merchandise trade deficit

India's GDP growth likely to stay strong in Q2FY26, say economists

Economists say the effect of a low deflator and low base is likely to boost expansion