Page 3 - Indian Economy

CEA Nageswaran warns 'free' public services come at heavy cost for economy

"Free is the most expensive word in public policy," Chief Economic Advisor (CEA) V Anantha Nageswaran said on Monday, warning that building infrastructure on the promise of below-cost services is a contradiction that ultimately ruins economic balance sheets. Addressing the CII Tamil Nadu Infrastructure Summit 2026 here, Nageswaran said the prevailing political orthodoxies surrounding utility pricing, urban development, and infrastructure financing exact a heavy toll. The CEA pointed out that pricing vital utilities like water at zero leads society to treat them as limitless, invariably resulting in waste and destruction. "The thing we call free is the thing we destroy. This is not a paradox, it is a policy choice and it can be chosen differently," he noted. He systematically debunked the notion that such underpricing acts as a social safety net. Instead, Nageswaran argued that free water effectively subsidises "comfortable" households that already possess piped connections. Meanwhi

Rise in wholesale inflation driven by global commodity, energy costs: Govt

The increase in wholesale price inflation in June to 9.87 per cent was largely driven by price pressures in items that are more sensitive to global commodity and energy costs, Parliament was informed on Monday. Minister of State for Finance Pankaj Chaudhary said in the Lok Sabha that the government has been actively undertaking a series of measures to control inflation and mitigate its impact on consumers. These measures include augmenting buffer stocks for essential food items, strategically selling procured grains in the open market, and calibrating trade policies. As a result of the government's measures, the retail or Consumer Price Index (CPI)-based inflation rate has been below the 4 per cent target over the last two quarters -- 3.1 per cent (January-March of FY26) and 3.9 per cent (April-June FY'27). On a year-on-year basis, wholesale price index (WPI) based inflation increased from 9.68 per cent in May to 9.87 per cent in June. "The rise in WPI inflation is largely driven

Corrosion costs India ₹14.1 trn annually; infra, energy worst-hit: Report

A Nomura report estimates that corrosion costs India ₹14.1 trillion annually, adding that better corrosion-management practices could potentially save the economy nearly ₹5 trillion every year

Centre exhausted 18% of fiscal deficit in Q1FY27, shows CGA data

Fiscal deficit stood at 18.2 per cent of the FY27 target as higher subsidy spending was offset by robust revenue growth and sustained capital expenditure

Rising heat poses growing risk to India's economy, jobs: World Bank

The World Bank says rising temperatures are reducing labour productivity and straining infrastructure, while stronger adaptation measures could protect growth and create millions of jobs

Rupee is undervalued, says RBI Governor: What it means and why it matters

RBI Governor Sanjay Malhotra says the rupee is undervalued and recent weakness is due to global factors, not India's economy. Here's what it means and why it matters

Macro fundamentals of Indian economy remain strong amid global challenges

Macroeconomic fundamentals of the Indian economy remain strong, supported by robust domestic demand, healthy corporate balance sheets and sustained fiscal discipline amid global challenges, Union Minister Pankaj Chaudhary told Parliament on Tuesday. Further, according to the RBI's Financial Stability Report (June 2026), the domestic financial system remains resilient, underpinned by strong bank and non-bank balance sheets, Minister of State for Finance Pankaj Chaudhary said in a written reply in the Rajya Sabha. "As a major player in global markets, India's economy is also linked with international trends, which impact its exchange rate movements. Since the start of the West Asia conflict, the Indian Rupee (INR) has depreciated against the US Dollar (USD) by 5.8 per cent in FY27 (from February 27 up to July 22, 2026)," he said. At present, the macroeconomic fundamentals of the Indian economy remain strong, he said, adding real GDP has consistently grown at over 7 per cent during the

From scarcity to scale: How the 1991 reforms transformed India's economy

Thirty-five years after the landmark reforms of 1991, the numbers show how India's economy, businesses and households have changed - and why the next phase of reforms will matter just as much

Weekly policy watch: Industrial output, RBI bond buyback in spotlight

India's policy calendar this week will track industrial growth, debt management and forex reserves

35 years of liberalisation: Which sectors emerged as biggest winners?

India's economic reforms changed the course of industries from IT and pharma to retail and aviation. Here's a look at the biggest winners and the challenges that continue today

After economic reforms, we were no longer afraid of the world: Tarun Das

"We can no longer be happy with protectionism. We must free the MSME sector and stop harassing them with so many inspectors. If necessary, we can build a stronger venture capital ecosystem for them"

Bengal needs to plug into national economy: West Bengal FM Swapan Dasgupta

With one of the highest debt-to-gross state domestic product ratios, West Bengal has limited fiscal space, making central assistance critical

India's private sector activity fell to 4-year low in July: Flash PMI

Business activity weakened as sales and output growth moderated while inflationary pressures intensified amid renewed tensions in West Asia

Foreign firms rent 105 mn sq ft space since 2022 to establish GCCs in India

Foreign companies are actively setting up global capability centres (GCCs) in India, with nearly 105 million sq ft of prime office space taken on rent by them since 2022 across seven major cities, according to Colliers. Real estate consultant Colliers India on Friday released a report on 'GCCs in India: Global leadership through scale, competitiveness, talent & innovation'. "India continues to be the most preferred destination for GCCs, underpinned by its deep and diverse talent pool, cost competitiveness, robust technology ecosystem, and favourable business environment," the consultant said. There were more than 2,100 GCCs in India at the end of 2025 and the number is projected to grow at over 4,000 centres by 2030, as per the report. The rising number of GCCs is increasingly influencing office space demand. During January 2022 and June 2026 period, foreign firms, largely from the US, have rented 104.6 million sq ft of office spaces to set up GCCs across top-seven office markets.

Reviving the 1991 spirit: Reform lessons from then should not be ignored

Thirty-five years after the landmark 1991 Budget, India must revive the reform spirit with fresh policy changes, stronger institutions and wider reforms beyond the economy

RBI sees resilient economy despite West Asia conflict, monsoon concerns

Reserve Bank of India said the economy remains resilient, supported by healthy demand and strong industrial and services activity, while warning that the Iran war and a deficient monsoon pose risks

India's GDP likely grew 6.4-6.6% in Q1 FY27 despite cost pressures: Icra

Economic activity rose to a 32-month high in June, but Icra expects GDP growth to moderate from 7.8 per cent in Q4 FY26 amid pressure on margins in key sectors

Why a weaker rupee is not necessarily a sign of economic weakness

A stable economy does not require a permanently stable exchange rate

India needs stable rules, should resist special concessions for FPIs

India needs long-term stable foreign investment. Ad hoc short-term concessions serve a limited purpose

Going beyond trickle-down: Rethinking value for 200 million consumers

The middle-income households will be spread evenly across population clusters, making up 63 per cent of households in the Big Six by 2031, 59 per cent in Boomtowns, 57 per cent in Breakout Cities and