The Reserve Bank of India (RBI) on Friday cut the repo rate by 25 basis points to 6.25 percent, marking the first reduction in five years. The central bank also projected GDP growth for fiscal year 2026 at 6.7 percent and inflation to come down to 4.2 percent in FY26 from 4.8 percent in FY25. The RBI said the global economic backdrop remains challenging but the Indian economy continues to remain strong and resilient.
Samajwadi Party MLA Abu Asim Azmi, suspended from the Maharashtra assembly over his remarks praising Mughal emperor Aurangzeb, will be '100 per cent' put in jail, Chief Minister Minister Devendra Fadnavis said in the legislative council.
Global trends, trading activity of foreign investors and news flow on tariffs are expected to influence movement in the equity market in a holiday-shortened week ahead, analysts said. Equity markets would remain closed on Wednesday for 'Mahashivratri'.
'If the US stagnates and falls into a recession, the dollar will weaken, oil prices will also dip. This augurs well for India.'
India needs another shot of difficult reform, of the kind only possible at gunpoint. Mr Trump holds that gun to our heads now. A drastic reduction in tariff protection, other elements of sarkari wet-nursing will force entrepreneurial India to become competitive again, argues Shekhar Gupta.
Generative AI (GenAI) has the potential to add a cumulative $1.2-1.5 trillion to India's GDP over the next seven years, according to a report by EY. The report titled 'AIdea of India: Generative AI's potential to accelerate India's digital transformation' says that in 2029-30 alone, GenAI can contribute an additional $359-438 billion to India's GDP. The report said that around 69 per cent of the overall impact of GenAI on India's GDP is expected to be derived from sectors such as business services (including IT, legal, consulting, rental of machinery and equipment, and others), financial services, education, retail, and healthcare.
'Not paying workers enough will end up being self-destructive or harmful for the corporate sector itself.'
The government is confident of meeting the fiscal deficit target of 5.9 per cent of gross domestic product (GDP) and the nominal GDP target of 10.5 per cent despite pressure in the initial months of FY24, Economic Affairs secretary Ajay Seth told Business Standard. Normally the initial months of any financial year see proportionally a higher fiscal deficit because the expenditure is evenly paced while revenue picks up in the later months, he said. "This year the proportional fiscal deficit so far is much closer to the target than in most other years.
India recorded economic growth of 7.8 per cent in the April-June quarter of 2023-24 against 13.1 per cent in the year-ago period, as per the National Statistical Office (NSO) data released on Thursday. India remains the fastest-growing major economy as China's GDP growth in the April-June quarter was 6.3 per cent.
Trump may temper his approach from time to time, but to think that he will change his basic philosophy is delusional, asserts T T Ram Mohan.
The government resolution does not spell out what action would be taken, if any, against those writing and publishing 'negative' news. Nor does it define 'negative news and "misinformation', explains Jyoti Punwani.
Samajwadi Party MLA Abu Asim Azmi was on Wednesday suspended from the Maharashtra legislative assembly till the ongoing budget session ends on March 26, over his remarks eulogizing Mughal emperor Aurangzeb.
Prime Minister Narendra Modi has emphasized dialogue over discord in India's relationship with China, acknowledging natural differences between the two countries but stressing that stronger cooperation is essential for their mutual interests and global stability. In a podcast with Lex Fridman, Modi highlighted the ongoing efforts to restore normalcy along the border following the 2020 clashes, emphasizing the importance of a stable and cooperative relationship.
Samajwadi Party MLA Abu Asim Azmi's remarks praising Mughal emperor Aurangzeb sparked outrage in the Maharashtra legislature, leading to calls for his suspension and accusations of treason. The issue, which was politicized by both the ruling coalition and opposition parties, led to the adjournment of both Houses of the state legislature. Azmi later retracted his statements, saying they were twisted and that he had not made any derogatory remarks against Shivaji Maharaj or Sambhaji Maharaj. The BJP, however, seized the opportunity to slam the Congress and other opposition parties, accusing them of trying to "eradicate" Sanatan Dharma. The Mumbai police have initiated a probe into the matter, registering a case against Azmi for his remarks.
India's manufacturing sector growth fell to a 14-month low in February amid softer increase in new orders and production, a monthly survey said on Monday. The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) registered 56.3 in February, down from 57.7 in January, but remained firmly within the 'expansionary' territory. In PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction.
Retail inflation dipped marginally to a nearly six-year low of 3.34 per cent in March due to a decline in prices of vegetables and protein-rich items. The Consumer Price Index (CPI) based inflation was 3.61 per cent in February and 4.85 per cent in March last year.
Prime Minister Narendra Modi on Wednesday urged all stakeholders to come together and invest in people for skill development, nurturing talent and promoting innovation which are essential for job creation and boosting the economy. Participating in post-Budget webinar on employment, Modi said the government has provided skill training to 3 crore youth since 2014 and decided to upgrade 1,000 ITIs and set up five centres of excellence.
It will be the second Budget of the Modi 3.0 government and eighth straight Budget for Nirmala Sitharaman, rare in Indian polity.
Facing criticism from the government over the central bank prioritising inflation over growth, the new RBI Governor Sanjay Malhotra on Monday said that prospects of the Indian economy are expected to improve on the back of high consumer and business confidence in 2025. "As we strive to preserve financial stability to support a higher growth path for the Indian economy, our focus remains steadfast on maintaining stability of financial institutions and, more broadly, systemic stability," Malhotra said in foreword to the Financial Stability Report.
Mahindra & Mahindra, Bharti Airtel, Infosys, Tata Motors, Titan, Tata Consultancy Services, Nestle and Maruti were also among the major laggards. HDFC Bank emerged as the only gainer from the pack.
Amid increasing volatility and recession fears looming over global markets that has led to the decline in wealth of a number of billionaires, Gautam Adani was the only one to buck the trend. The billionaire added $43.3 billion in net worth between Diwali 2021 (November 4) and this year's Diwali (October 24) according to Bloomberg data. He added more wealth than the gross domestic product (GDP)of more than a dozen Indian states.
'Every Indian should move to an EV, and the government should not buy any fossil fuel cars. The government should become the first driver of EV adoption.'
The RBI on Wednesday slashed key interest rate by 25 basis points, for the second time in a row, to support a shuttering economy hit by reciprocal tariffs imposed by the US. Following the rate cut, the key policy rate eased to 6 per cent providing relief to home, auto and corporate loan borrowers.
At the PMO, policies are framed by factoring in analytical perspectives, implications, sustainability, and other dimensions.
The time is ideal for a 'Dream Budget' akin to the 1991 reforms that sparked high growth and unlocked significant gains in productivity, points out Rajeswari Sengupta.
The Trump trade shock is a chance to push long-overdue reforms, rather than tinker with tariffs to appease the US, suggests M Govinda Rao.
Several leading scientists, academicians, and agriculturalists have called for raising government support for research and development to make Indian agriculture future-ready.
'How low GDP would have been, we don't know.' 'It raises serious questions because so many indicators are pointing to such a sharp decline and GDP estimates are still showing 4 per cent growth.'
If Beijing succeeds in this multipronged effort to challenge the current dominant power, it will have not just economic but political and security consequences. There is no let-up in the South China Sea nor any de-escalation moves on the India-China border. This portends to ominous signalling from Beijing, observes China expert Srikanth Kondapalli.
Global trends, macroeconomic announcements and US tariff developments are expected to drive stock markets in a holiday-shortened week, analysts said. Market participants will also closely track foreign investor activity, geopolitical tensions, and their impact on the US dollar and crude oil prices, they added.
Among Sensex shares, Mahindra & Mahindra, Bharti Airtel, Bajaj Finance, Zomato, Nestle, Bajaj Finserv, Maruti and Titan were the biggest gainers. Sun Pharma, Power Grid, Tata Consultancy Services, Tech Mahindra, Asian Paints and Tata Motors were among the laggards.
Global funds have pulled out Rs 1.54 trillion from domestic stocks in fiscal 2024 - 25 (FY25), the highest-ever outflow recorded so far, according to the data compiled by Business Standard. The last time the global funds exited Indian shores in droves was back in 2022, when they sold a net Rs 1.41 in the backdrop of Covid-19.
Uttar Pradesh Chief Minister Yogi Adityanath defended the Maha Kumbh, claiming it generated Rs 3 lakh crore in business and provided significant economic benefits to the region. He also highlighted the "flawless" law-and-order management during the event, citing no crime reports despite the participation of 66 crore devotees and tourists. Adityanath countered opposition criticism of the event, stating that a family with 130 boats made a profit of Rs 30 crore during the 45-day congregation.
After cement, billionaire Gautam Adani's group and Kumar Mangalam Birla's Aditya Birla Group are set for a face-off in the wires and cable business with both conglomerates announcing forays into the high double-digit growth sector.
The Indian economy is estimated to grow at 7 per cent in the 2022-23 fiscal, down from 8.7 per cent a year ago, mainly due poor performance of mining and manufacturing sectors. As per the first advance estimates of national income released by the National Statistical Office (NSO) on Friday, the manufacturing sector output is estimated to decelerate to 1.6 per cent in the current fiscal from 9.9 per cent in 2021-22. Similarly, mining sector growth is estimated at 2.4 per cent in the current fiscal as against 11.5 per cent in 2021-22.
Finance Minister (FM) Nirmala Sitharaman has presented a forward-looking Budget, reinforcing the government's commitment to 'Reform, Perform, and Transform'.
'But I don't think the government is in a great hurry to sign the BTA.'
'If weak indicators persist, there is a risk that India could slip into a prolonged slowdown similar to the one experienced between 2014 and 2019,' warns Debashis Basu.
Corporate India's net profit as a percentage of gross domestic product (GDP) dipped in the 2022-23 financial year (FY23) -- after rebounding sharply in FY22 -- amid a decline in global commodity prices. Top 500 companies' combined net profit stood at 4.1 per cent of the GDP for FY23, down from 4.3 per cent in the previous financial year when it had gone up from just 3.5 per cent in FY21. "The year-on-year (YoY) decline was led by global commodities, which contributed adversely to the ratio, while the financial sector contributed positively.
