Page 3 - Indian Economy

World Bank lifts India FY27 growth view to 7.1% on robust domestic demand

World Bank raises India's FY27 growth forecast to 7.1 per cent from 6.6 per cent but flags risks from high oil prices, El Niño and capital flow volatility

Crisis-proofing the corporation

Through the journeys of five companies, this book offers hard-won lessons and best practices for navigating tough times and emerging stronger

Capex slows in Q2: What’s behind the fall in new project announcements

According to provisional data from the Centre for Monitoring Indian Economy, new project announcements by the government and private sector fell sharply in the September quarter

India economy strong; energy security, jobs key to growth: N Chandrasekaran

India's economy is robust in a world that is uncertain and difficult, and multiple indicators show that the country is in a stable and strong position, Tata Sons Chairman N Chandrasekaran said on Monday and highlighted that energy security, advanced manufacturing jobs and investment in human capital are "critical" for sustaining long-term growth. He noted that the Viksit Bharat 2047 vision has percolated across multiple aspects of the country. Delivering on the vision, he said, will require inclusive and sustainable development, built on world-class infrastructure, institutions and intellectual property. "... All three will be critical," he said, addressing the Indian Foundation for Quality Management (IFQM) Symposium 2026. Chandrasekaran -- who was recently handed his third five-year term at the helm as Tata Sons Chairman amid an intense boardroom battle-- further said the Indian economy is doing very well and, over the last several years, has consistently exceeded expectations by

1991 reforms: Quant analysis shows liberalisation gains are petering out

India's global percentile ranking has improved modestly since 1991, but weak per capita gains and external vulnerability remain key drags

AI driving up global bond yields, a worry for EMs: DEA secy Anuradha Thakur

Economic Affairs Secretary Anuradha Thakur said heavy government borrowing and rising AI investment are increasing global demand for capital and pushing up its cost

Today's resilience may not imply tomorrow's immunity: RBI Governor Malhotra

Sanjay Malhotra said future crises could emerge from geopolitics, cyberattacks or technology failures, requiring resilience across banks, markets and financial infrastructure

Niti Aayog member Rajiv Gauba calls for light-touch regulation for growth

Gauba said the state should be firm where risks are high and light-touch where risks are low, while remaining predictable in both cases

Today's financial resilience does not guarantee future stability: RBI guv

Reserve Bank Governor Sanjay Malhotra on Saturday said the resilience of the financial system today should not be taken as a guarantee against future vulnerabilities and called for continued vigilance to safeguard financial stability. Speaking at the Kautilya Economic Conclave here, he outlined five priorities for policymakers, stressing that financial stability should focus not on preventing shocks but on strengthening the financial system's ability to withstand and contain their impact. "Today's resilience may not necessarily imply tomorrow's immunity, and we are committed to remain vigilant of emerging vulnerabilities and continue to keep our financial system strong and resilient," he said, highlighting the resilience of the financial system supported by healthy balance sheets of banks and NBFCs. He said shocks, whether endogenous or exogenous, are inevitable and the objective should be to build a financial system capable of providing financial services even under severe ...

Sanctions, tariffs sometimes weaponised as policy tools: PK Mishra

Principal Secretary to the prime minister, P K Mishra, on Saturday said export restrictions, sanctions and tariffs become instruments of economic policy and they are sometimes even weaponised. The top government functionary also said that wars disrupt energy and food markets while shipping routes and geographical choke points become sources of economic vulnerability. Addressing the Kautilya Economic Conclave on the subject 'A World Priced for Risk', he said India is a major energy importer, and any prolonged disruption to an important maritime route can affect the economy adversely. India's response, therefore, has combined several layers of protection. "For energy security, the disruption around the Strait of Hormuz has been a particularly clear reminder of how geography can translate into economic risk," he said. Without mentioning any country, the top official said export restrictions, sanctions and tariffs become instruments of economic policy, sometimes they are even ...

Democracy makes India's economic reforms durable, says vice-president

C P Radhakrishnan said consensus-building may slow decisions at times but makes reforms sustainable, while warning that growth benefits must reach every section of society

10 years of inflation targeting: How elephant was driven away to the jungle

India's inflation-targeting framework has anchored price expectations, but economists see scope to refine its mandate

Manufacturing PMI recovers in Sep amid higher output and job growth

Stronger domestic and overseas demand lifted new orders and output, while employment expanded at its fastest pace since May and manufacturers turned more optimistic

Finance Ministry sees Q2 FY27 growth at 7.3%, flags geopolitical risks

India must work on ensuring that the economy is more competition-friendly rather than business-friendly, says the report

From farmers to shopkeepers, India counts the cost of a weak monsoon

Rice yields have fallen after erratic monsoon rains, while higher farm input costs threaten rural incomes and spending during the key wedding and festival season

India's manufacturing PMI rises to 55.1 in September, hits 7-month high

The HSBC India Manufacturing PMI rose from 52.8 in August as new orders grew at their fastest pace since February, while exports and output also accelerated

Industrial output growth quickens to 8% in August on manufacturing, power

Manufacturing growth rose to 9 per cent, its second-highest level in 29 months, while electricity and gas supply expanded 12.3 per cent during August

India taking steps to build strategic sectors: Economic Affairs secy

Economic Affairs Secretary Anuradha Thakur said India must build capacity in strategic sectors such as semiconductors to shield the economy from an uncertain global environment

Global agencies raise India's FY27 growth outlook, see RBI rate hikes

Economists said revisions to GDP growth projections by these institutions were expected as the print for the June quarter was better than expected

After Moody's, S&P, Fitch, others raise FY27 India GDP growth projections

Fitch Ratings on Wednesday raised India's GDP growth forecast for the current fiscal year to 6.9 per cent, from 6.4 per cent, citing strong economic growth in the June quarter and overall economic resilience. According to Fitch, India's economic momentum is likely to moderate over the remaining fiscal year, prompting the Reserve Bank of India (RBI) to increase interest rates by 0.25 per cent in its October monetary policy meeting. A growth rate of 7.8 per cent in the June quarter indicates that the "Indian economy has shown resilience in the face of the shock from the US-Iran war, despite the strong terms-of-trade deterioration seen in the first half of 2026," Fitch said. It said that PMI survey data point to a slower pace of expansion in both manufacturing and services; below-normal monsoon rains will weigh on growth in agriculture and rural demand; and rising inflation will constrain real incomes and consumer dynamics. "Private investment prospects look more buoyant, and we expe