INDIA ECONOMIC GROWTH
India doing well on a relative basis, but can’t escape growth slowdown due to tariff tantrum: Chetan Ahya
Morgan Stanley projects India's economic growth to slow to 5.7% in Q4 due to global trade tensions, despite strong domestic demand and government spending. While Asia ex-China shows rebounding shipping activity, caution is advised due to empty ships. Capital expenditure slowdown is expected, with monthly capital goods imports data serving as a key indicator.
India’s creative economy to lead next growth wave, says Adobe CEO at Waves Summit
At Waves 2025, Adobe CEO Shantanu Narayen said India’s next growth phase will be driven by creativity, not code, powered by AI. He emphasised local AI models, ethical tech, and creator-led innovation. Adobe also announced partnerships to boost creative education and expand its presence across India.
India's to grow at 6.6% in FY26 as tax relief supports demand amid trade uncertainty: Deloitte
Deloitte forecasts India's economic growth to remain steady at 6.6% in FY2025-26, balancing domestic tax stimulus against uncertain global trade. Tax incentives are expected to boost consumer spending, while potential tariffs on exports to the US pose a risk. The outcome of US-India trade negotiations will significantly influence India's economic trajectory.
Piyush Goyal concludes historic Norway visit, focuses on strengthening trade ties
Piyush Goyal's visit to Norway, the first by an Indian Commerce Minister in over 25 years, aimed to strengthen bilateral trade and economic relations. Discussions with Norwegian leaders focused on enhancing trade under the India-EFTA TEPA, exploring new cooperation opportunities, and fostering innovation-led growth.
Private sector pushes ahead with capex plans despite headwinds: Govt Survey
A statistics ministry survey reveals that approximately 30% of private companies intend to upgrade their facilities in FY25, driving significant capital expenditure despite economic headwinds. While intended capex for 2025-26 is slightly lower, it remains above 2023-24 levels, indicating cautious optimism and strategic investment planning amidst improving economic conditions.
Unilever, Reliance see signs of consumer demand revival in India
India's urban shoppers are showing signs of increased demand, potentially offsetting trade negotiation volatility with the US. Hindustan Unilever anticipates improved demand driven by macroeconomic tailwinds, while Reliance Retail reports a profit jump. These positive indicators suggest a possible end to a year-long economic slowdown, supported by government initiatives and a favorable monsoon forecast.
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MoF flags global uncertainty as risk to India's FY26 growth
The finance ministry has cautioned that global uncertainties pose a risk to India's FY26 growth, potentially delaying private sector investment. The ministry emphasised the need for proactive measures to foster a cycle of investment and growth.
Trade tensions to hit India oil consumption: World Bank
The World Bank forecasts that India's oil consumption will be negatively affected by escalating trade tensions. Globally, oil consumption growth is expected to slow significantly in 2025 and 2026. Despite falling global commodity prices, India's coal consumption is projected to rise, driven by government policy and the limited role of renewable energy in meeting electricity needs.
Firms pin hopes on new tax regime to revive mass demand after prolonged slump
Companies anticipate increased demand due to income tax relief starting in April. This could boost consumption, especially in tier-2 and tier-3 markets. Hindustan Unilever expects consumers to either spend more or save more. Honda Motorcycle & Scooter India foresees a positive shift in entry-level demand. Joy Personal Care anticipates a more positive demand environment.
ALTERRA invests $100 mn in clean energy platform Evren
ALTERRA, the world's largest private climate investment vehicle, has made its first investment in India by co-investing $100 million in Evren, an Indian renewable energy company, alongside Brookfield Asset Management. This investment will support the development of up to 11GW of solar, wind, and battery storage projects in Rajasthan and Andhra Pradesh, contributing to India's renewable energy goals.
India's growth outlook at risk from trade tensions and geopolitical risks: Finance Ministry
India's economic growth faces headwinds from trade tensions and geopolitical risks in fiscal year 2025/26, potentially disrupting supply chains and inflating prices, according to a finance ministry report. The IMF has also lowered India's growth forecast to 6.2%, citing increased global uncertainty. The government urges swift action to mitigate risks and boost private investment through debt reduction.
India will be fiercely competitive on many products due to comparative matrix of tariffs: Jyotiraditya Scindia
Union Minister Jyotiraditya Scindia asserts India's competitive edge despite global tariffs, attributing it to a vast domestic market, economies of scale, and innovation focus. He highlights India's favorable position in a comparative tariff matrix, anticipating increased competitiveness across various products. Scindia emphasizes India's economic transformation, projecting it to become the third-largest economy by 2028, driven by manufacturing and export growth, particularly in mobile phone production.
Big growth, bigger gaps: India's uneven pay story
Despite India's rising GDP per capita between 2017 and 2024, income inequality in the labor market persists. While median incomes increased, the top 1% experienced faster growth than the bottom 50%. Workforce composition shifts, with a rise in self-employment and a decline in regular salaried jobs, further exacerbate these income disparities, highlighting the need for targeted interventions.
RBI Governor pitches India story in US, calls nation 'a partner in prosperity'
RBI Governor Sanjay Malhotra promoted India as a prime long-term investment destination, citing its robust growth and stability amidst global economic challenges. India's average annual growth rate of 8.2% over the past four years makes it the fastest-growing major economy. Strong domestic demand, policy continuity, and significant foreign exchange reserves further enhance India's attractiveness to investors.
RBI Governor Sanjay Malhotra urges US industry to invest in India
Reserve Bank Governor Sanjay Malhotra has urged US industry leaders to invest in India, highlighting its position as the fastest-growing major economy. He emphasized India's policy consistency, stable macroeconomic fundamentals, and congenial business environment. Malhotra pointed out the country's remarkable resilience, with an average annual growth rate of 8.
BFSI now 27% of GDP and 38% of Nifty: ICICI Bank, Shriram Finance top buys
India's BFSI sector has experienced remarkable growth, driven by digitalization and regulatory reforms, significantly increasing its market capitalization and prominence in equity markets. While banks remain central, NBFCs and fintechs are gaining ground. Retail credit penetration and digital payments have surged, transforming transaction habits and asset quality has improved, making BFSI a compelling investment.
India's economic growth outlook unchanged, poised to outperform global growth despite risks: Lakshmi Iyer
Lakshmi Iyer of Kotak Investment Advisors discusses India's inward-focused economic strategy, fueled by rising rural and urban consumption and supported by the BFSI sector. Despite global growth concerns and fluctuating dollar dynamics, India's bond market remains attractive due to domestic institutional support and potential US rate cuts, with impending global index inclusions further bolstering bond yields.
RBI's cash influx seen a small relief amid global uncertainty
India’s recent monetary easing and liquidity push are unlikely to immediately revive domestic demand, according to bankers and analysts, despite the Reserve Bank of India (RBI) cutting policy rates and injecting over $70 billion into the banking system. The measures, including a second consecutive 25 bps rate cut on April 9, are seen more as cushioning steps amid slowing growth and global uncertainty.
World Bank cuts FY26 growth forecast for India to 6.3%, flags weak tax collection
The World Bank projects India's economic growth to slow to 6.3% in the current fiscal year, citing global economic uncertainty. The report emphasizes the need for India to enhance domestic revenue mobilization to bolster resilience against future economic shocks. It highlights that low tax revenue collection, stemming from a large informal economy and agriculture sector, contributes to fiscal fragility.
India's growth prospects to be impacted adversely over risk of prolonged recession due to trade wars, warns RBI
Reserve Bank of India's Nagesh Kumar raised concerns about trade wars. He said global recession poses a serious risk. This situation could adversely affect India's economic growth. The World Trade Organization has issued warnings about declining world trade. Global GDP growth forecasts may face downward revisions. These revisions are due to reciprocal tariffs and ongoing trade disputes.
India's growth aim cuts do not throw it out of 'fastest growing economy' race
Despite downward revisions from global financial institutions like the IMF and World Bank, India is expected to maintain its position as the fastest-growing major economy. Projections for India’s GDP growth in 2025-26 range between 6.2 per cent and 6.7 per cent. These revisions reflect a broader global economic slowdown, sluggish recovery in China, and U.S. trade policy changes.
World Bank cuts India’s FY26 growth aim; IMF sees world leaning on New Delhi
India Growth Forecast: The World Bank has revised India's economic growth forecast for FY26 to 6.3%, citing global economic weakness and policy uncertainty. This adjustment follows a similar move by the IMF, which also lowered India's GDP forecast. South Asia's overall growth prospects have weakened, with projections downgraded for most countries in the region due to rising global uncertainty and domestic weaknesses.
India April business growth hits 8-month high as export orders surge, PMI shows
India's private sector experienced robust growth in April, reaching an eight-month high, driven by strong demand and a surge in foreign orders, particularly for manufactured goods. The manufacturing sector saw significant expansion, fueled by increased export business, while the services sector also contributed to the overall positive momentum.
India aims to double share of manufacturing in GDP to 23 pc helped by sunrise sectors: FM
India aims to significantly boost its manufacturing sector's contribution to GDP from 12% to 23% in the next two decades, prioritizing job creation and economic expansion. The focus is on 14 sunrise sectors, including semiconductors and renewable energy, supported by production-linked incentives. This strategic shift seeks to absorb a youthful workforce, reduce import dependence, and establish competitive global supply chains.
India needs 7.3% annual growth to be a developed country by 2047: CSEP
India needs a 7.3% annual growth rate until 2047 to achieve developed nation status, requiring states to lead reforms in land, labor, capital, education, and health. A uniform strategy is imprudent due to states' heterogeneity. Gujarat, Karnataka, and others should remove obstacles, while Rajasthan, Bihar, and others should improve growth attributes.
IMF cuts India’s growth forecast to 6.2% in FY26 amid tariff uncertainty
The IMF has revised India's FY26 GDP growth forecast downwards to 6.2% due to trade tensions and US tariffs, with a further reduction to 6.3% projected for FY27. Despite these adjustments, India's growth is expected to lead emerging and advanced economies. Global growth projections have also been lowered, with tariffs impacting inflation and economic performance worldwide.
US tariff hike clouds India’s export outlook, adds pressure on domestic demand: RBI
The Reserve Bank of India (RBI) has expressed concerns about the potential negative impact of US trade tariff hikes on India's economic growth. The central bank warns that reduced exports and weakened domestic demand, stemming from these tariffs, could hinder overall progress.
Bold reforms, enhanced capacities key to India's growth story over next two decades: FM Nirmala Sitharaman
Finance Minister Nirmala Sitharaman emphasized India's commitment to sustained growth through bold reforms and strategic collaborations. Structural reforms, infrastructure development, and deregulation have laid a strong foundation. India aims to become a developed nation by 2047, focusing on inclusive, sustainable, and innovation-led growth, leveraging digital infrastructure and supporting MSMEs, especially women-led enterprises.
ETMarkets AIF Talk: With Rs 10,000 cr in AUM, Carnelian sees tariff volatility as investment opportunity, sees Manoj Bahety
Bahety concluded by reiterating his bullish stance on India’s long-term prospects, encouraging investors to focus on fundamentals and look through the short-term volatility.
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