A prolonged supply shock can transmit to lower incomes, and dampen confidence and sentiment, warns Aditi Nayar, chief economist, head-research and outreach, ICRA.
We who were dreaming of being the third largest economy in dollar terms, have slid back to sixth, thanks to the falling rupee. We are moving about with begging bowls for investments and trade opportunities, which will be a while in materialising, if ever, notes Shreekant Sambrani.
Goldman Sachs has materially lowered its earnings growth forecast for Indian companies by a cumulative 9 percentage points over the next two years.
'Congress needs a positive agenda rather than primarily picking up on two business houses.'
Most members of the Reserve Bank of India's Monetary Policy Committee (MPC) expressed concerns about inflation becoming generalised and highlighted uncertainties surrounding both inflation and growth prospects due to the West Asia conflict, according to the recently released minutes.
S Mahendra Dev, chairman of the Economic Advisory Council to the Prime Minister, expressed confidence that the rupee would stabilise around the 92-93 level against the US dollar, despite geopolitical tensions, and that foreign investment flows would return.
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.
'You have seen the retrenchments by big corporates in the IT industry because they are not getting enough offers.' 'MSMEs in the manufacturing sector are really struggling. They do not know what to do. They are not able to predict what will happen tomorrow.'
'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.'
India's defence expenditure surged to $92.1 billion in 2025, making it the world's fifth-largest military spender, according to SIPRI data. This 8.9 per cent year-on-year rise was primarily driven by operational and procurement needs following heightened regional tensions with Pakistan in May 2025.
Indian economy grew by 7.8 per cent in April-June -- the highest in five quarters -- before the disruptive US tariffs were imposed.
India is conducting a special audit of 101 cities to assess ease of living from the citizen's perspective, Comptroller and Auditor General K Sanjay Murthy said.
Prime Minister Narendra Modi has urged states to balance the opportunities presented by artificial intelligence with the need to safeguard against social challenges like cyber fraud and drug abuse. He also warned of the risks posed by El Nino conditions, calling for stronger water conservation measures and emphasising the collective resolve towards a 'Viksit Bharat'.
Private hospitals accounted for 30.8 per cent of current health expenditure in FY23, while pharmaceuticals and medical goods contributed more than 21 per cent, underlining continued dependence on private healthcare and medicine spending.
Brokerage Bernstein has warned Prime Minister Narendra Modi that India risks squandering recent economic gains unless it accelerates structural reforms, particularly in jobs, manufacturing and innovation.
Uttar Pradesh Chief Minister Yogi Adityanath announced that the state has secured investment proposals worth approximately Rs 50 trillion over the past nine years, attributing this economic revival to the enforcement of the rule of law and strategic policy changes. He affirmed UP's trajectory towards becoming a $1 trillion economy by 2029-30.
Russian President Vladimir Putin will attend the BRICS summit in New Delhi on September 12-13, according to a presidential aide.
The IMD is predicting close to a 60% probability of deficient rainfall, which means there is a strong possibility that the monsoon this year will be poor.
Indian benchmark indices Sensex and Nifty closed marginally lower due to profit-taking, following the Reserve Bank of India's decision to keep the repo rate unchanged while lowering its growth expectations for the current fiscal year and forecasting higher inflation.
Nomura has increased its March 2027 target for the Nifty 50 to 25,900, driven by strong corporate earnings and attractive market valuations, even as risks from the West Asia conflict and high oil prices persist.
India's first trillion-dollar company will be built on technology it owns, not just operates, predicts Ajay Kumar.
'...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.'
Fitch Ratings on Thursday raised India's GDP growth forecast for the current fiscal to 7.4 per cent, from 6.9 per cent, on increased consumer spending and improved sentiment boosted by GST reforms.
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.
The Indian economy recorded a six-quarter high growth of 8.2 per cent in July-September, as factories churned out more products in anticipation of a consumption boost from the GST rate cut, according to government data.
'We won not (only) because we were able to carry out long-range precision strikes.' 'That is, of course, one of the reasons but we had better situational awareness about what's happening than Pakistan.'
Analysts predict that developments in West Asia, their impact on crude oil prices, and the trading activity of foreign institutional investors (FIIs) will be crucial factors influencing the Indian stock market this week.
Karan Adani of Adani Ports & Special Economic Zone emerged as the top absolute value creator, adding Rs 2.67 trillion as the company's mcap rose from Rs 42,149 crore in March 2020 to Rs 3.09 trillion in March 2026 (7.3x) -- the largest rupee addition on the list.
It seems odd to criticise a country for delivering growth rates in standards of living and consumption that have been perhaps the fastest, longest, and most broad-based (affecting hundreds of millions of people) in history, points out Arvind Subramanian.
The Reserve Bank of India (RBI) and the central government have introduced a package of measures, including tax exemptions for FPIs on government securities and a concessional foreign-exchange swap facility, aiming to attract up to $50 billion in foreign capital. This initiative is designed to strengthen India's balance of payments and potentially cover the projected BoP gap for FY27.
Iranian Foreign Minister Abbas Araghchi is in India for a BRICS foreign ministers' meeting, where discussions will focus on the escalating crisis in West Asia and its impact on global energy supply chains.
Under Mission Sudarshan Chakra, the country's national security shield is to be expanded by 2035 to ensure comprehensive protection of both strategic and civilian critical infrastructure.
The escalating crisis in West Asia and its impact on the global energy supply chain are expected to dominate deliberations at a two-day meeting of BRICS foreign ministers to be hosted by India.
Iranian Deputy Foreign Minister Kazem Gharibabadi has urged India to take the lead in bringing peace to West Asia, highlighting the UAE's role in stalling BRICS consensus on the conflict. Gharibabadi also discussed a new framework with Oman for merchant vessels passing through the Strait of Hormuz.
Russian President Vladimir Putin and Chinese President Xi Jinping have reaffirmed their commitment to dismantling global hegemonism and building a 'multipolar world' during high-level talks in Beijing.
If TVK MLAs and ministers are perceived as clean, or demonstrably cleaner than their predecessors, the credibility dividend will be enormous. The voter will feel rewarded, points out Ramesh Menon.
Comptroller and Auditor General of India K Sanjay Murthy highlighted the need for stronger accountability systems to support India's urban transformation and sustainable mobility push at the BRICS Supreme Audit Institutions Leaders' Summit in Bengaluru.
The Indian rupee depreciated by 32 paise to close at 92.83 against the US dollar, influenced by escalating global tensions, particularly the US-Iran conflict, and the deadline for the RBI's instructions to banks to curb overnight positions.
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.
'Unfortunately, today most ministers are busy with either election duty or praising duty. They are not interested in serving duty.' 'Ministers have become relaxed like retired people still holding onto jobs.' 'Look at how the NEET paper leaked. But there is no accountability.' 'After 12 years, they have become saturated. They are short of ideas.'
