Indian states' capital expenditure (capex) utilisation for April-August FY27 fell to 21.21 per cent, slightly below the 21.73 per cent recorded in the same period of FY26, according to a CAG analysis. Despite the dip, this figure remains the third highest in the past six years, with significant variations observed across states.
Indian factories saw an 8 per cent decline in gross fixed capital formation (GFCF) in FY25, marking the first drop since the pandemic, despite achieving record high employment generation, according to the latest Annual Survey of Industries (ASI) data.
'I don't really expect the August increase in food prices, which was close to 6 per cent, to persist as we go close to the end of this year.'
Private corporations in India invested approximately 30.3 trillion in fixed assets during FY25, marking a 7 per cent increase from the previous year, according to the statistics ministry. This growth in private capital expenditure contrasts with a slowdown in government capital spending.
'The large number of tariff lines in the 90-99 per cent band highlights how deeply embedded Chinese sourcing has become in India's electronics imports.'
Opposition leaders have questioned how caste responses will be recorded without state-wise pre-prepared lists.
India's fresh investment plans in Q1FY27 surged 71 per cent to 14.77 trillion, primarily driven by four large nuclear power projects worth 6.5 trillion, according to investment monitoring firm Projects Today. Excluding these nuclear projects, fresh investment plans actually declined 4.27 per cent quarter-on-quarter.
Moody's Analytics predicts India will remain the fastest-growing major economy in 2026 and 2027, but its pace will moderate due to a global slowdown, geopolitical risks, and financial market volatility, despite the boost from AI demand.
In cities where women own a larger share of small businesses, women also account for a larger share of jobs.
Election-related freebies and populist measures are other factors crimping the revenue profile of these states.
Eighteen of India's 28 states exceeded the fiscal deficit ceiling of 3 per cent of GSDP in FY25, a deterioration comparable to the Covid year of 2020-21, according to the Comptroller and Auditor General (CAG). The report also noted a decline in states reporting a revenue surplus, with Bihar, Mizoram, and Telangana moving into deficit.
India's unemployment rate reached an 11-month high of 5.5 per cent in May, up from 5.2 per cent in April, according to the National Statistics Office, indicating a softening labour market as labour-force participation also eased.
Chief Economic Advisor V Anantha Nageswaran stated that India's economy is projected to return to a 7 per cent-plus growth trajectory by 2027-28 (FY28), or sooner if external conditions improve, despite near-term challenges from the West Asia crisis.
Assam emerged as the fastest-growing large state with a remarkable 17.3 per cent nominal GDP CAGR over five years.
The new Index of Industrial Production (IIP) series, which shifts the base year from 2011-12 to 2022-23 and is scheduled for release on June 1, will, for the first time, track rare earths and minor minerals, piped natural gas (PNG), and water supply, sewerage and waste management.
Bank of Baroda economists project India's GDP to grow 6.5-6.8 per cent in FY27 but warn that the fiscal deficit could overshoot the budgeted 4.3 per cent target, potentially reaching 4.7-4.8 per cent of GDP due to subsidy overruns, excise duty cuts, and oil marketing company losses.
The Confederation of Indian Industry (CII) has urged the Indian government to gradually restore the Rs 10-per-litre cut in special additional excise duty on petrol and diesel over six to nine months. This move aims to relieve pressure on government finances as crude oil prices stabilise, without significantly impacting consumer sentiment.
Haryana recorded the fastest growth in unincorporated non-agricultural employment among major Indian states in 2025, with a 29.8 per cent increase to 3.1 million workers, while Gujarat experienced the sharpest contraction, declining by 12.6 per cent to 8 million.
India's unincorporated non-agricultural sector, excluding construction and corporate enterprises, added approximately 7.5 million workers in a single year, reaching 128.1 million employed in 2025, according to the NSO's ASUSE 2025 report.
India's like-for-like gross Goods and Services Tax (GST) revenue growth slowed to a five-year low of 5.57 per cent in FY26, reaching Rs 23.32 trillion, primarily driven by a significant surge in import revenues.
