Page 4 - Indian Economy

A look at India's measures to cushion oil shock amid soaring prices

From curbing gold imports and raising fuel prices to tightening currency-market rules, authorities have stepped up efforts to conserve dollars, with the rupee hitting a new low Tuesday

Weekly policy watch: Core sector, bank credit, forex data in focus

India's macro calendar will be led by core sector, PMI, bank credit, deposit, and forex reserves data, while PM Modi's Europe visit will keep trade ties in focus

States' capex utilisation dipped to 77% in FY26 despite higher outlay

The state-wise picture also reveals a sharp churn at the top and bottom relative to the last financial year

North America, NE Asia, Latin America make up over 35% of India's exports

North America, North-East Asia, and Latin America together accounted for over 35 per cent of India's merchandise exports, which stood at USD 441.78 billion in 2025-26, reflecting a gradual shift towards a more diversified and resilient global trade structure, according to commerce ministry data. Exports to East Africa increased 13.7 per cent to USD 12.6 billion, accounting for 2.9 per cent of India's exports, while North Africa rose 14.8 per cent to USD 8 billion with a 1.8 per cent share. "India's exports in 2025-26 reflected increasing geographic diversification, with strong growth across Asia, Africa, and Latin America even amid global trade disruptions," an official said. According to the data, while North America continued to dominate India's export basket with exports of USD 97.7 billion accounting for 22.1 per cent of total exports, growth remained relatively moderate at 1.3 per cent year-on-year, that indicates to a mature but resilient demand base. The strongest momentum c

FinMin confident of coping with West Asia crisis with adequate fiscal room

The Centre says fiscal prudence and timely interventions have helped India cushion the economic fallout of the prolonged West Asia conflict

Morgan Stanley pegs India GDP growth at 6.7% in FY27

Sustained high oil prices, Morgan Stanley cautioned, could trigger non-linear and progressively larger impacts on growth, as the burden on households and firms intensifies over time.

Moody's slashes 2026 India growth forecast to 6% amid high energy costs

Moody's Ratings on Tuesday slashed India's GDP growth forecast for year 2026 by 0.8 percentage points to 6 per cent on subdued private consumption, capital formation, and industrial activity amid higher energy costs. In its Global Macro Outlook May update, Moody's said over the next six months, the impact from higher energy prices and fuel and fertilizer-related shortages will vary widely across countries, reflecting differences in exposure and resilience. "The global outlook remains highly uncertain amid an increasingly prolonged confrontation and fragile ceasefire between the US and Iran, We estimate growth losses ranging from around 0.8 ppt for India," Moody's said. For calendar year 2027, Moody's slashed GDP growth estimates by 0.5 percentage points to 6 per cent for India, reflecting lingering headwinds that gradually fade as shipping flows stabilise and energy supplies improve, allowing underlying economic activity to recover. Moody's said India is "particularly vulnerable" t

India must replicate Apple story many times over: NITI Aayog's Rajiv Gauba

At the CII Annual Business Summit 2026, Rajiv Gauba said India must move from "prohibited unless permitted" to "permitted unless prohibited" to deepen reforms

Prosperity is both India's ambition and destiny: RBI dy governor Gupta

RBI Deputy Governor Poonam Gupta says India has entered a virtuous cycle of growth and stability, with many states likely to approach high-income levels by 2047

Modi's gold warning sparks big question: Is India facing economic stress?

Gold Buying Could Hurt the Rupee: Why Modi Issued an Unusual Appeal to Indians

India's growth to slow to 6.7% on waning momentum, oil price shock: BMI

India's economic growth is likely to decelerate to 6.7 per cent in the current fiscal, from 7.7 per cent in 2025-26, with the GDP expansion expected to slow significantly due to waning momentum and oil price shock from Iran war, BMI said on Monday. BMI, a Fitch Group firm, also said that the prospect of the Iran-US conflict escalating in scope presents downside risk to its growth outlook and India must balance spending needs on defence and fuel price stabilisation against fiscal consolidation agenda. The tax reforms in GST and income tax carried out in 2025 will partly offset effects of cost-push inflation, BMI said, adding looser monetary policy will support capital spending, as increased uncertainty amid the war and higher input prices hurt investment. BMI estimates that India's economy grew 8 per cent y-o-y in the January-March quarter of 2026, faster than its original 7.8 per cent projection. It has revised its growth forecast for 2025-26 upwards by 0.1 percentage points to 7.7

Statsguru: Big welfare promises confront strained state economies

Welfare promises dominate politics even as several states face rising fiscal stress and uneven economic capacity

Odisha pitches east coast-led growth as India's next economic engine

Odisha Chief Minister Mohan Charan Majhi urged industries to back east coast-led growth, positioning the state as a future manufacturing and logistics hub

Why Moody’s says India is the world’s most resilient emerging market

India stands out as the most resilient emerging market since 2020, says Moody’s. Strong forex reserves and stable policies helped it weather global shocks—but rising debt and oil risks

Revamped NITI Aayog, PMEAC can aid in deciphering state of India's economy

It is time the country had access to a larger and a more varied range of assessments of the Indian economy

Best of BS Opinion: Government must expedite board appointments at PSBs

Today's Opinion wrap tracks RBI's bank board concerns, India's satellite strides, gaps in economic guidance, China's consumption debate, and a memoir on rural farming journeys

India most resilient emerging mkt, better placed to manage shocks: Moody's

India has been the most resilient large emerging market economy since 2020, and its sizeable forex reserves have helped check currency volatility and reinforce confidence during global shocks, Moody's Ratings said on Tuesday. In a report on emerging market, Moody's said India is well placed to manage future shocks because monetary policy frameworks are clear and predictable, inflation expectations are well anchored, and exchange rates can adjust when needed. Stating that India is "better placed" among emerging market sovereigns to manage future global shock, Moody's said the country would also enter any future periods of stress with strong and accessible buffers. "India's reliance on domestic funding is balanced by deep local markets and sizeable reserves ... Nevertheless, India's relatively high debt burden and weak fiscal balance limit the amount of space available to respond to successive shocks," Moody's added. It said India had made key policy choices that support stability we

India is the third-largest economy in the world in real terms

PPP-based estimates show India as the world's third-largest economy, highlighting how currency distortions mask real purchasing power, domestic demand strength, and global economic influence

Manufacturing PMI rises to 54.7 in April, cost pressure hits 44-month high

The reading remained above 50, which denotes expansion in activity, while a reading below that signifies contraction

Economic security in an insecure world needs revamped risk architecture

What's needed is a revamped economic architecture predicated on proactive risk management and improved shock absorption