Moody's Ratings has reduced India's GDP growth forecast for 2026 to 6 per cent, citing subdued private consumption, capital formation, and industrial activity due to higher energy costs and global uncertainties.
Even if there is an early agreement on a cessation of hostilities in West Asia, the price shock will not go away easily, points out A K Bhattacharya.
'...especially pressure on the rupee, the current account deficit, and foreign exchange outflows.' 'The key question over the next several months is whether the government can prevent external turbulence from feeding into domestic economic pessimism.'
S&P Global Ratings has increased India's GDP growth forecast for the next fiscal year to 7.1 per cent, citing private consumption, investment, and exports as key drivers. However, the agency also cautioned that the conflict in the Middle East could strain India's fiscal position due to higher energy prices.
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.
'Markets never fully lose hope. But an important shift could come if the Strait remains closed -- moving from high prices to no prices.'
Despite a 21 per cent minimum wage hike in parts of Uttar Pradesh, factory workers in India, particularly in states like Uttar Pradesh and Haryana, continue to experience wages below the national average and a widening disparity compared to supervisors and managers.
Nasscom's newly appointed Chairman, Srikanth Velamakanni, outlines key priorities including restoring revenue growth in IT firms and promoting the role of artificial intelligence and other technologies in companies.
The Reserve Bank of India (RBI) Governor Sanjay Malhotra is now confronting the classic growth-inflation tradeoff, a situation exacerbated by the West Asia war, which threatens to end the 'goldilocks period' of low inflation and robust growth.
A joint study by IBM and IndiaAI, a MeiTY initiative, indicates that Artificial Intelligence (AI) has the potential to contribute over USD 500 billion to India's economy by 2030. The report highlights the need for improved AI literacy, infrastructure, and data quality to fully realise this potential.
A new report suggests that prolonged conflict in the Middle East could significantly impact India's GDP growth and inflation.
Telangana is experiencing rapid urbanisation, projected to exceed the national average by 2026. The state government's Socio Economic Outlook highlights the role of cities as economic engines and the use of AI and other technologies to modernise urban administration.
Sports Minister Mansukh Mandaviya released the Srinagar Khel Sankalp document, outlining a national vision to strengthen sports culture through cooperative federalism, focusing on athlete-centric development and infrastructure expansion.
India has rejected allegations of declining media freedom and erosion of religious and minority rights, asserting that the country is a vibrant democracy that guarantees free speech to all.
The gems and jewellery industry anticipates challenging times following the government's decision to increase gold import duty to 15 per cent, a move that exporters warn could fuel the grey market and heighten smuggling risks.
India's foreign direct investment (FDI) inflows are projected to surpass $90 billion in 2025-26 (FY26), driven by robust policy reforms, free trade agreements, and strong economic growth, according to DPIIT Secretary Amardeep Singh Bhatia.
'Policy consistency combined with timely and calibrated reforms are expected to ensure that India not only maintains macroeconomic stability, but also emerges as a globally competitive and inclusive economy.'
India has expressed serious concerns about the West Asia crisis and its potential impact on energy supplies and maritime stability, urging BRICS nations to find practical solutions to geopolitical challenges and unilateral sanctions.
A new report highlights India's increasing vulnerability to cyberattacks and CBRN threats due to geopolitical tensions, industrial growth, and urbanisation, calling for an urgent strengthening of its CBRN security strategy through collaboration and investment.
Highlights of the Economic Survey 2025-26
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.
The government is planning a postal logistics infrastructure upgrade for India Post to modernise parcel facilities, aligning them with those in developed nations, according to Communications Minister Jyotiraditya Scindia.
RBI Governor Sanjay Malhotra stated that the central bank is closely monitoring whether the supply shock from the West Asia conflict will lead to a generalised price rise, potentially necessitating monetary policy action.
Delhi LG Taranjit Singh Sandhu addressed the Global Confluence 2026, emphasising the importance of maintaining a human element at the heart of digital nation-building. He highlighted India's digital transformation and the role of technology in improving lives, while urging a focus on inclusive development and national security.
Union Power Minister Manohar Lal Khattar has lauded the Bhakra Beas Management Board (BBMB) for its effective management of water and power resources, catering to the needs of partner states. The event marked 50 years of the BBMB.
Rising automobile exports are reflective of the increasing acceptance of India-manufactured vehicles across global markets, according to Economic Survey 2025-26.
Prime Minister Narendra Modi has appealed to citizens to adopt austerity measures, including avoiding destination weddings abroad and reducing edible oil consumption, to mitigate the impact of the West Asia crisis on India's economy.
The United Arab Emirates has announced its decision to withdraw from OPEC and the wider OPEC+ alliance, effective May 1, 2026, signalling a significant policy-driven evolution in its long-term energy strategy aimed at aligning with domestic economic goals and increased production investment.
West Bengal Governor RN Ravi has called for collective efforts to restore the state's past glory, highlighting concerns over economic and educational indicators. His remarks coincided with Chief Minister Mamata Banerjee criticising him for allegedly 'abusing' her instead of extending New Year greetings.
The United Arab Emirates has announced its decision to withdraw from OPEC and the wider OPEC+ alliance, effective May 1, 2026, signalling a significant policy-driven evolution in its long-term energy strategy aimed at aligning with domestic economic goals and increased production investment.
'Even if the war ends tomorrow, which is unlikely, and we go back to the pre-war status quo, the world will still need some time to get over the sudden shock of oil price increases.'
'If the war continue for a longer period of time, it is just a matter of time before the government will pass on some of the price increases.'
Kanwal Rekhi is a peaceful techie who ardently believes in competitive market economics and democracy, despite the trauma his family suffered during Partition and his narrow escape from violent mobs in 1984.
The closure of the Strait of Hormuz has disrupted some 20 per cent of the global flows but even if it opens, damages to production facilities in the region will take time to repair, points out Sunita Narain.
Ashok Lahiri, a distinguished economist with experience in government, the private sector, and electoral politics, has been appointed as the new Vice-Chairman of NITI Aayog, tasked with strengthening India's reform trajectory and policy-making.
'At the first sign of real trouble, that money will move. There will be a run.'
The World Bank has affirmed India's strong position to withstand the current global energy shock, citing high foreign exchange reserves, fiscal space, and low inflation as key buffers supporting continued growth despite international headwinds.
Indian equities are experiencing their sharpest rebound in years, with the BSE 500 index rallying 12.1 per cent so far this month, echoing Covid-era recoveries despite ongoing geopolitical uncertainty and earnings risks.
Jio Financial Services and Munich-based Allianz Group have signed a binding agreement to establish a 50:50 joint venture for general and health insurance in India, building on an earlier reinsurance partnership.
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.
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