India is hosting the BRICS summit, leveraging the platform to address global trade tensions and champion the developmental priorities of the Global South, including food, energy, and supply chain security. The summit, attended by leaders like President Xi Jinping and Vladimir Putin, will focus on resilience, innovation, cooperation, and sustainability, with India aiming to strengthen intra-BRICS collaboration and discuss global matters. The expanded BRICS grouping represents a significant portion of the world's population and GDP, making its discussions crucial for global economic stability.
Five southern states are stepping up coordination on delimitation, tax devolution and language issues, reviving calls for a stronger collective South platform.
Arundhati Bhattacharya, Salesforce President and CEO for South Asia, stated that cloud and AI are democratising capabilities, offering India a unique opportunity to leapfrog in technology. Speaking at the IMC Chamber of Commerce, she emphasised that AI will create more jobs and urged Indian businesses to transform using technology, rather than merely digitising. She also highlighted the significant economic potential of AI adoption for India.
RBI Deputy Governor S C Murmu stated that the introduction of merchant discount rate (MDR) on UPI transactions is unlikely to cause a shift back to cash, despite some concerns, emphasising that MDR will help the payments ecosystem recover costs.
Maharashtra Navnirman Sena (MNS) chief Raj Thackeray has voiced strong concerns about the divisive role of social media in society, alleging it fuels anger and religious disputes. He also criticised the unbridled use of high-decibel sound systems, questioned the government's economic policies despite GDP growth claims, and objected to political messaging in public offices. Thackeray further addressed linguistic politics and endorsed the "Inquilab Zindabad" slogan.
Indian benchmark indices, Sensex and Nifty, closed marginally lower due to elevated crude oil prices, fresh US-Iran tensions, and expectations of a tighter monetary policy from the US Federal Reserve, despite strong domestic GDP growth.
A NITI Aayog report indicates that India's digital public infrastructure (DPI) initiatives are projected to contribute significantly to the nation's GDP, potentially reaching 4 per cent by 2030.
Higher US Treasury yields, particularly the 10-year yield approaching 5 per cent, pose a significant near-term risk to global equity markets, including India, potentially triggering a 'big correction' according to market strategists.
BRICS nations have successfully reached a consensus on a joint statement following extensive negotiations, with India playing a crucial role in bridging differences, particularly among West Asian members like Iran, Saudi Arabia, and the UAE, despite regional conflicts and geopolitical tensions.
The successful hosting of the 18th BRICS summit in New Delhi has provided a significant boost to the BJP, offering a timely opportunity to strengthen its narrative against the opposition ahead of crucial assembly elections next year. BJP sources highlight the BRICS grouping's strong condemnation of the Pahalgam terror attack and the consensus declaration as major diplomatic victories for the Modi government, countering criticisms of its foreign policy. The party plans to leverage these outcomes during its month-long Seva Sankalp campaign to connect with various sections of society.
'... to see that young people are gainfully employed. After that, it will become very difficult as we will start ageing much more rapidly.' 'We have a huge proportion of Gen Z. After 2030, every year, we will start seeing a gradual shift towards a slightly older society.'
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Russian President Vladimir Putin has proposed a new investment platform, based on the New Development Bank (NDB), to fund projects in trade, infrastructure, logistics, and technology across BRICS nations, emphasising that the grouping's expanding economic cooperation is not 'against anyone' but aims to advance members' national interests.
The highlight of the successful BRICS Summit was its ability to deliver a joint statement that all members, including Iran and the United Arab Emirates, embroiled in the war in West Asia, signed.
Senior Congress leader Shashi Tharoor has articulated India's position on BRICS, advocating for it to be a "non-West, but not anti-West" platform, a stance he believes is crucial for India's national interest. He highlighted the prestige of hosting the BRICS summit, India's responsibility to represent the Global South, and the significance of bilateral meetings, particularly with China and Russia. Tharoor also addressed the strained India-China relations, citing border issues and trade leverage, and discussed the challenges within BRICS, including difficulties in achieving consensus on global issues and trade imbalances, while also considering the need for diversified international relations amidst unpredictable US sanctions.
India's trade deficit reached a six-month high of $31.98 billion in July, driven by a sharp increase in imports, particularly crude oil, electronic goods, coal, and fertilisers. Both merchandise exports and imports recorded their second-highest levels during the same period.
A NITI Aayog report indicates that India's digital public infrastructure (DPI) initiatives could contribute 4 per cent of the GDP by 2030, a significant increase from the current 1 per cent.
A working paper by the Economic Advisory Council to the Prime Minister (EAC-PM) reveals a continuous decline in the rate at which foreign-owned firms invest in fixed assets in India since the FY20 peak, contrasting with a steady increase from Indian business groups.
The Centre has spent 28 per cent of its FY27 capital expenditure budget of Rs 12.21 trillion in the first three months against around 24.5 per cent during the corresponding period a year ago.
The BRICS summit in New Delhi brings together leaders from major emerging economies to address global challenges like trade disputes, geopolitical upheavals, and the economic impact of conflicts in Ukraine and West Asia. India, as chair, aims to position BRICS as an economic growth engine, focusing on the Global South's food, energy, and supply chain security. The summit also highlights the grouping's expansion and its growing influence in global governance.
Prime Minister Narendra Modi cautioned against the 'weaponisation' of technology and critical minerals at the BRICS summit, advocating for cooperation to foster shared prosperity. Concurrently, Chinese President Xi Jinping announced plans for an open-source AI ecosystem for BRICS nations, positioning Beijing as a key technology partner amid global AI competition.
The fiscal consolidation path and Rs 1 trillion stabilisation fund provide room to absorb mild shocks, but sustained oil-price increases pose risks.
The United Nations has revised downward India's economic growth forecast for 2026 to 6.4 per cent from an earlier 6.6 per cent, attributing the change to global uncertainties and economic shocks stemming from the ongoing West Asia crisis.
A new report by FICCI, BCG, and IBA outlines that India's banking sector must grow significantly faster than nominal GDP to support a USD 30 trillion economy by 2047, requiring banking assets of USD 45 trillion. The report highlights the sector's current strength, challenges in digitisation, and the need to enhance resilience against fraud and cyber threats, proposing a 13-point agenda for stakeholders.
'We have a very demanding electorate which expects us to do something. So we will have to do something which is a bit out of the ordinary while at the same time keeping in mind the risk factors.'
Nepal is grappling with the devastating aftermath of flash floods, with the death toll reaching 1,356 and nearly 5,000 people, including foreign nationals, still missing. Identification of bodies is a major challenge, with only a fraction identified so far. President Ramchandra Paudel has appealed for climate justice and national unity for relief efforts. International teams, including experts from India and China, are assisting in search and rescue, particularly at hydropower projects where workers are trapped. The country is also working to restore infrastructure and reassure tourists to protect its vital autumn tourism season.
Foreign portfolio investors (FPIs) have injected Rs 30,919 crore into Indian equities in August, marking their second consecutive month of net buying. This follows a Rs 20,200 crore investment in July, indicating a potential reversal after four months of significant outflows, driven by improving corporate earnings, resilient economic activity, and a stable rupee.
India's fiscal deficit is projected to reach 4.5 per cent of GDP for the current fiscal year, exceeding the budgeted target, as the government's policy responses to the West Asia conflict are expected to strain public finances, according to research firm BMI.
Base revisions are technical exercises, but history shows they can significantly reshape the narrative around India's growth performance.
India achieved a current account surplus of USD 7.1 billion, or 0.7 per cent of GDP, in the January-March quarter of 2025-26, primarily boosted by robust services exports and increased remittances from overseas Indians, according to recent Reserve Bank of India data.
'You have to get private investment to somewhere between 35% to 36% of GDP. It is hovering about 30%-31%.'
'Wages have not risen. Rural wages have stagnated. The growth was 0.7 per cent last year. For casual and irregular labour, the wage growth is negative.'
The Asian Development Bank (ADB) has revised down India's GDP growth forecast for fiscal year 2026-27 (FY27) to 6.6 per cent from an earlier 6.9 per cent, primarily attributing the change to elevated energy prices stemming from the Middle East conflict. Despite this moderation, India is still expected to remain the world's fastest-growing major economy.
'After that the burdens of an ageing population will be upon us, and the share of working age population will shrink.'
India's digital economy is projected to constitute nearly 20 per cent of the nation's GDP by 2030, fuelled by a growth rate twice as fast as the overall economy, according to a senior government official.
Reserve Bank Deputy Governor S C Murmu has highlighted the "cash paradox" where currency in circulation continues to grow despite a significant increase in digital payments. This trend complicates the RBI's forecasting and planning for currency production and distribution, prompting the central bank to seek solutions and explore ways to extend banknote life and reduce the carbon footprint of the cash cycle.
'A balance had to be struck between the economic cost of taking action at this point against the need not to fall behind the curve in controlling inflation and anchoring inflation expectations.'
The challenge thrown by the youth movement creates the opportunity for a more consequential debate on India's economic trajectory because it must remain centered on India's youth as its driving impulse, asserts former foreign secretary Shyam Saran.
Indian benchmark indices, Sensex and Nifty, saw early gains driven by lower crude oil prices and buying in Reliance Industries, even as the Reserve Bank of India maintained its benchmark policy rate for the fourth consecutive meeting, reinforcing confidence in the domestic economy.
The Indian government has approved the introduction of one billion polymer banknotes in Rs 10 and Rs 20 denominations for field trials, aiming to enhance durability. This move comes as the Finance Minister also addressed Parliament on declining retail inflation, GST reforms, and other fiscal measures taken to support the economy and household consumption.
