Page 6 - Indian Economy

Centre's fiscal deficit in April-February at 80% of FY26 target: CGA

Fiscal deficit narrows to 80.4% of revised estimates in April-February FY26, aided by higher revenues and steady capex, though global risks may pressure FY27 outlook

Centre's fiscal deficit touches 80.4% of full-year target at Feb-end: CGA

The Centre's fiscal deficit stood at Rs 12.52 lakh crore at the end of February, or 80.4 per cent of the annual budget target for 2025-26 compared to 85.8 per cent in the year-ago period, according to government data released on Monday. The central government estimates the fiscal deficit (the gap between expenditure and revenue) during 2025-26 at 4.4 per cent of GDP, or Rs 15.58 lakh crore. According to monthly accounts released by the Controller General of Accounts (CGA), the Centre's total receipts stood at Rs 27.91 lakh crore, or 82 per cent of the budget target by February-end 2026. The receipts included Rs 21.45 lakh crore tax revenue (net) and Rs 5.8 lakh crore non-tax revenue. The CGA data showed that the central government's total expenditure during April-February 2025-26 stood at Rs 40.44 lakh crore, or 81.5 per cent of the full financial year budget target.

West Asia conflict impact on India's economy likely significant: CEA review

It said that early high-frequency indicators for March 2026 suggest a moderation in economic momentum, reflecting the initial impact of these global developments

S&P raises India growth forecast for FY27; flags risks from energy shocks

The ratings agency expects growth to moderate from FY26 levels, supported by consumption and investment, while warning of risks from geopolitical tensions and energy prices

West Asia conflict: Private sector growth at 3-year low as demand falls

Flash data shows private sector growth slowed sharply as West Asia conflict hit demand and raised costs, though expansion remained above 50 mark

Goldman Sachs cuts India's 2026 growth forecast to 5.9%, sees rate hike

The fresh cut in growth estimate by Goldman's analysts follows a change in their assumptions on oil prices and the period of disruption to supplies

India Flash PMI slips to 56.5 in March, weakest expansion since 2022

India's private sector growth slows to its weakest pace since late 2022 as soft domestic demand and rising costs weigh, even as export orders hit a record high

From Indian films to Italian wine, Iran war ripples through global economy

India is among the most vulnerable to the war's fallout, with heavy dependence on imported crude and LPG, much of it routed via Hormuz, now facing disruptions and shortages

Disruptions from West Asia war threaten to derail India's growth momentum

Generations of Indian workers and businesses have turned the Arab side of the Gulf into a vital appendage of their own country

India’s new GDP series highlights: Economy grows by 7.8% in Q3 FY26; full year growth raised to 7.6%

India’s economy expanded 7.8% in the October–December quarter of FY26, according to newly released national accounts data based on a revised GDP series with 2022–23 as the base year.

India's urban shift: Some Budgets launch schemes, others reshape system

At its core, India's urban rejuvenation challenge is institutional. Long-life assets need long-term capital, but municipal revenues and investor confidence remain limited

India blends sustainability with growth in twin-track model: Mospi

Mospi bulletins highlight gains in sanitation, electrification and inequality reduction as India aligns economic expansion with environmental sustainability under SDG framework

India growth forecasts cut, inflation risks rise as Iran war drags on

Economists expect slower growth due to reliance on imported oil, with Goldman cutting its 2026 forecast to 6.5%, while IndusInd warns of a 30-basis-point hit and risks from weak consumption

Best of BS Opinion: West Asia war, rupee depreciation & RBI's policy tone

From the economic fallout of the West Asia conflict and lessons from modern warfare to the RBI's upcoming policy decision and Kanwal Rekhi's memoir, here are the key views from today's Opinion page.

Iran war pushes oil above $100; $110 crude may force fuel price hike: Elara

Crude oil above $110 could become a "breaking point" for India, forcing fuel price hikes and pressuring government finances, says Elara Capital. Notably, oil prices hit $106 per barrel on Monday

West Asia war cloud over India's economic 'sweet spot' as oil prices rise

Rising crude prices and trade disruptions from the West Asia war are prompting economists to trim India's growth forecasts, threatening the economy's recent "sweet spot"

Stabilising the Indian economy: Why currency depreciation is a good idea

Inflation targeting plus floating exchange rate plus open capital account

Govt revises fiscal deficit ratios for FY23-FY25 after GDP base year update

The fiscal deficit as a percentage of GDP for three financial years till 2024-25 has been revised upwards following the revision in base year for calculation of GDP, the government informed Parliament on Tuesday. As per the new GDP Series published on February 27, the fiscal deficit as a percentage of GDP works out to be 4.9 per cent for 2024-25, 5.7 per cent for 2023-24, and 6.7 per cent for 2022-23, Minister of State for Finance Pankaj Chaudhary said in a written reply in the Rajya Sabha. The fiscal deficit was earlier estimated at 4.8 per cent for FY'25, 5.63 per cent for FY'24 and 6.4 per cent for FY'23. In absolute term, fiscal deficit stood at Rs 15.74 lakh crore in FY'25, Rs 16.55 lakh crore in FY'24 and Rs 17.38 lakh crore in FY'23. On February 27, 2026, the government released the new series of Gross Domestic Product (GDP) estimates with 2022-23 as the base year, replacing the previous series with a base year of 201112. With the new 2022-23 base, the Nominal GDP or GDP at

Rising external uncertainties: Iran war can complicate economic management

Economists expect a CAD of about 1 per cent of the country's gross domestic product (GDP) this financial year. This could increase to about 1.5 per cent in 2026-27

Bullish outlook on Indian economy is simplistic as well as unrealistic

Almost any economy can grow at 8% for few years. Sustaining that pace for decades is far rarer and requires policy continuity, relentless implementation, and the ability to correct course when needed