Page 8 - Indian Economy

From crops to consumers: How a weak monsoon affects India's economy

A poor monsoon can trigger a chain reaction across the economy, from lower farm output and higher food prices to weaker demand and changes in RBI policy

State priorities split as outlays surge, spending patterns diverge

West Bengal led social welfare and nutrition outlay at 14.86 per cent of its budget

Subsidy burden rises to ₹4.4 trn but moderating as states curb spending

States spent as much as 8.6 per cent of their revenue receipts on subsidies in FY18. Such spending rose to 9.4 per cent in FY21 and to 10.8 per cent in FY25

Global risks persist despite markets' optimism after the Iran conflict

Risks to the global economy persist, and it is far too early to celebrate finger on the pulse

Renewed US-Iran conflict: What do fresh West Asia tensions mean for India?

The attacks on commercial vessels in the Strait of Hormuz brought maritime traffic to a standstill and reignited concerns over global oil supplies and trade

Diaspora's global success: What India can learn from its overseas achievers

The global success of the Indian diaspora suggests that expanding meritocracy, opportunity and fair competition at home could accelerate India's rise as a leading economy

Reform delayed is reform denied: Time to make reforms part of everyday life

We have missed the bus before, but now reforms must become part of everyday conversation

Manufacturing PMI falls to 3-month low in June amid int'l demand slowdown

Output, new orders, exports and hiring lose momentum as softer demand and intense competition weigh on factory activity, though the sector remains in expansion territory

Manufacturing PMI falls to 54.2 in June as factory growth loses steam

HSBC India Manufacturing PMI slipped from 55.0 in May, with output, new orders, exports and employment expanding at a slower pace

India's fiscal deficit rose 12-fold to ₹1.62 trillion in April-May

Within tax revenue, the government's excise duty collections fell nearly 20 per cent to Rs 2.12 trillion in April-May

India's April-May fiscal deficit at 9.6% of 2026-27 target: Govt data

India has set the fiscal deficit target for 2026-27 at 4.3% of GDP, or ₹16.96 trillion

Remain alert to external, domestic risks: RBI governor Sanjay Malhotra

Preserving financial stability more important than ever, says RBI governor Sanjay Malhotra

India's industrial output growth hits five-month high of 5.1% in May

Industrial output growth rose to 5.1 per cent in May as electricity generation strengthened and the government adopted Output-PPI for the new IIP series

Steady, stable as she goes: India and the economic fallout of Gulf conflict

The Gulf conflict tested one kind of resilience; the years ahead will test others. India met the first test in good order. That is a reason for quiet confidence - and for getting on with the next

Goldman Sachs lifts India GDP forecast to 6.8% for 2026 after US-Iran deal

The brokerage raised India's GDP forecast, while cutting its inflation estimate to 4.4% and current account deficit forecast to 1.1% of GDP, on falling crude oil prices after the US-Iran peace deal

Flash PMI growth eases to 57.4 in June as demand and hiring lose momentum

The HSBC Flash India Composite PMI Output Index fell to 57.4 in June from 59.3 in May, as demand, hiring and business optimism softened across both key sectors

Spending on experiences to outpace physical goods in India: Report

Indian households are expected to increase spending on experiences faster than physical goods through 2030, with hotel accommodation emerging as the fastest-growing category

Best of BS Opinion: Beyond headlines and between the lines

From IPOs and exports to AI, nutrition and politics, the deeper story lies not in headline numbers but in the strength of underlying structures

Shifting composition: Dependence on services exports is increasing

Services exports are driving India's trade growth and resilience, but stronger manufacturing output remains essential for broad-based job creation and sustainable growth

Parl panel to study India's economic conditions amid global uncertainties

As conflicts and geopolitical uncertainties around tariffs cloud domestic growth, a key parliamentary committee has decided to examine the evolving economic condition of the country. According to a Lok Sabha bulletin, the Standing Committee on Finance has chosen 'Evolving Economic Conditions in the Country' as an additional subject for detailed examination during the year 2025-26. Parliamentary panels select their subjects soon after they are constituted. But they are at liberty to select additional subjects keeping in mind evolving circumstances. Indian economy is estimated to have grown at 7.7 per cent in 2025-26 (April-March), with a robust 7.8 per cent growth in the January-March quarter. India's GDP had grown at 7.1 per cent in the 2024-25 fiscal year. However, the RBI estimates GDP growth to slow to 6.6 per cent in current fiscal year as the ongoing conflict in West Asia pushes up cost of fertiliser and fuel globally. India is a net importer of both crude oil and fertiliser.