Page 3 - Indian Economy

India's economy can near $20 trn by 2046 if current growth pace holds: CEA

The economy doesn't need "heroic assumptions" to meet that target, Chief Economic Adviser V Anantha Nageswaran said

Manufacturing PMI falls to 5-year low in August amid sales slowdown

New orders and output expanded at their weakest pace in five years, while manufacturing employment contracted for the first time in two-and-a-half years

Manufacturing PMI slips to 52.8 in August, weakest expansion in five years

India's manufacturing sector expanded at its weakest pace in five years in August as output and new orders slowed, while employment fell for the first time in two-and-a-half years

Reaping benefits of reforms in very uncertain global environment: CEA

CEA V Anantha Nageswaran says strong manufacturing, services and exports underscore India's economic resilience despite global uncertainty and energy risks

Centre's FY27 fiscal deficit touches 26.8% of full year target at end July

In absolute terms, the fiscal deficit, or gap between the government's expenditure and revenue, was Rs 4,55,144 crore in the April-July period of the 2026-27 fiscal year

Reforms, agile economic management bearing fruit: FM on 7.8% Q1 GDP growth

Finance Minister Nirmala Sitharaman on Monday said the reforms undertaken by the NDA government, together with an agile management of the economy, are bearing results, with real GDP growth coming in at 7.8 per cent in the April-June quarter. India's economic growth in the first quarter is well above the Reserve Bank of India's 7 per cent GDP growth forecast for the quarter. "The credit for this strong performance goes to the people of India and their hard work. Reforms undertaken by the NDA Government, together with an agile management of the economy, are bearing results," Sitharaman said in a post on X. She said the Narendra Modi-led government remains committed to further expanding economic opportunities for all citizens. As per GDP data released by the Ministry of Statistics & Programme Implementation, nominal GDP in Q1 of FY 202627 is estimated to have grown by 10.3 per cent, while real GVA (gross value added) recorded 8.2 per cent growth.

India to sustain 7% growth in FY27 despite global headwinds: FM Sitharaman

Finance Minister Nirmala Sitharaman says India can maintain its growth momentum despite geopolitical uncertainties and supply-chain disruptions

Why India's 7% growth may not be enough for 2047 developed nation goal

India needs 9.25% growth rate to meet PM Modi's 2047 developed-nation goal, according to Ashok Lahiri, a senior official at the country's apex government-run think-tank

Sitharaman invites global investors to manufacture, innovate in India

Finance Minister Nirmala Sitharaman invited global investors to set up manufacturing bases, and technology and innovation centres in India, urging them to leverage talent and opportunity to build for the world. Addressing a high-level Business Roundtable with leading investors and business leaders in Chicago on Friday, Sitharaman highlighted India's broad-based growth, reform momentum and expanding opportunities for long-term investment. Sitharaman emphasised that India's investment proposition rests not on any single sector, but on the convergence of scale, growth, talent, infrastructure, technology and sustained reform over the past decade. "The policy environment is increasingly focused on enabling businesses to invest, manufacture, innovate and expand," she said at the roundtable organised by India's Consulate General in Chicago in association with US-India Strategic Partnership Forum. The Finance Minister invited global partners to co-develop, co-produce and build for global .

Monsoon revival 'partly mitigates' agri sector risks: RBI's August Bulletin

FDI flows revives in June: Robust Q1 eco momentum continued in July

Economy shows notable resilience despite global headwinds: RBI bulletin

The economy has demonstrated notable resilience to the ongoing global headwinds, characterised by buoyant domestic demand and rising manufacturing and services activity, the latest Reserve Bank bulletin said on Tuesday. An article in the August bulletin also said the recovery in southwest monsoon in July helped kharif crop sowing reach closer to normal acreage, partly mitigating some of the risks to the agriculture sector. However, the global economic outlook continues to be shaped by geopolitical frictions in West Asia and fresh tariffs by the US, said the article on 'State of the Economy'. "The momentum of Q1 2026-27 continued in July with most of the high-frequency indicators reflecting sustained manufacturing and services activity, and double-digit expansion in merchandise exports and imports," it said. The article further said while headline consumer price index (CPI) inflation edged up above the target, it was primarily on account of supply-side pressures. Stable core inflati

Economic activity growth eases to 11.4% in July from 12.1% in June: ICRA

Mining, electricity, e-way bills and domestic air traffic weighed on growth in July, while cement and coal output strengthened and unemployment declined

US-Canada trade flux may give India an edge in Ottawa negotiations

After the talks collapsed on Saturday, the US has imposed 50% tariff on $20 billion Canadian goods and Ottawa has vowed it would impose "dollar-for-dollar" retaliatory tariffs from September 8

CabSec seeks programmes in colleges to build an advanced Indian economy

Sources said the directions include preparing a model to improve employability and upskilling opportunities for ITI students, besides rejigging method for awarding them degrees

RBI Central Board reviews global, domestic risks to economic outlook

The RBI's Central Board also reviewed various areas of the central bank's operations, including the functioning of its committees and the Ombudsman Scheme

Benefits or Security? What does the Indian State owe you, the citizen? | Macro Matters Ep 7

In this episode of Macro Matters, Business Standard's Ankur Bhardwaj speaks with veteran journalist A. K. Bhattacharya on a fundamental question: What does the Indian State owe you, the citizen?

'Industry must utilise FTAs, focus on value addition, and diversify mkts'

The government on Thursday mooted that the industry must utilise free trade agreements (FTAs), focus on value addition, build resilient supply chains, and actively diversify export markets to boost manufacturing and strengthen the country's position in global trade. All the trade agreements which India has signed "is a door, but doors, however magnificently crafted, do not open themselves. It is the industry that must walk through them," said Additional Secretary in the Department of Commerce Yashvir Singh. He said the industry should use FTAs to expand market access, attract investment and technology, diversify supply chains, and build manufacturing ecosystems that can withstand global shocks. The ambition is not merely to participate in global manufacturing but to make India a reliable, competitive, and trusted partner in global value chains, he said said at a manufacturing conclave. "I place before this audience five imperatives, not suggestions, but strategic obligations. First

India builds long-life infra, but corrosion remains a costly weak link

A Nomura report estimates India's corrosion bill at ₹14.1 trillion a year, raising questions over whether infrastructure standards and maintenance practices are keeping pace with rapid asset creation

Employment opportunities

India must prepare workers for changing global needs

Median Indian firm grew in size after Covid-19 pandemic, EAC-PM paper finds

The paper found corporate profits rebounded sharply after the Covid-19 pandemic, but investment growth remained slower