US ECONOMY GROWTH
Quarter after quarter, year after year, India is fastest growing economy: FM Sitharaman
Finance Minister Nirmala Sitharaman said India remains the world's fastest-growing major economy and accused Congress leader Rahul Gandhi of undermining the country's achievements by repeatedly predicting crises that have not materialised.
Charting the Global Economy: War pushes up prices, dents growth
The Iran war is fueling a global inflation wave, prompting the European Central Bank to raise interest rates for the first time in nearly three years.
Global air travel demand to slow to 2.1% in 2026, IATA says
Global air travel demand is set to grow in 2026, but at a slower rate. The Middle East faces a significant contraction due to ongoing conflicts. Africa is projected for the strongest growth. Asia Pacific will lead global expansion. Europe and Latin America will see moderate increases. North America's growth will be limited. The industry shows adaptability despite challenges.
FCNR(B): Revisiting a proven crisis management tool
Facing renewed external sector pressures, the RBI has revived a version of the FCNR(B) deposit framework to attract foreign currency inflows and support the rupee. While effective for near-term stability, experts say long-term resilience requires reducing structural vulnerabilities and import dependence.
India's FTAs set stage for $1 trillion export target: Report
India's new generation of Free Trade Agreements can act as a catalyst for manufacturing expansion, private capex revival and supply-chain integration, with Electronics, Pharmaceuticals and Engineering & Machinery Goods positioned as the strongest beneficiaries. Yes Securities said the agreements, combined with PLI schemes and "China+1" diversification, give India its clearest shot yet at achieving US$1 trillion in merchandise exports by 2030.
UK economy shrinks in April as Middle East war hits
Britain's economy contracted in April as the Middle East war hit growth, official data showed Friday, dealing a setback to Prime Minister Keir Starmer as he grapples with a political crisis. "We expect the economy to continue to fade as the year goes on, and particularly for as long as there is no lasting peace deal in the Middle East," he added. ajb/cw
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Is India's economic growth real? Raghuram Rajan says something is off
Former RBI Governor Raghuram Rajan questions India's strong economic growth figures, citing weak corporate investment and declining foreign capital inflows. He argues these factors are difficult to reconcile with official data, suggesting a disconnect between headline numbers and business behavior. Rajan also highlights the lack of a clear economic roadmap and warns of vulnerabilities from the Middle East conflict.
ET Alpha Wealth Summit Masterclass | India scores 6-7/10 on growth durability, but the real problem runs deeper, says Nomura's Aurodeep Nandi
India's strong GDP growth hides underlying fragilities. Economist Aurodeep Nandi warns that without boosting domestic demand and investing heavily in research and development, India risks falling into the middle-income trap. Current growth relies on top-tier consumption and services exports. Manufacturing and private investment lag. This structural shift is crucial for lasting prosperity.
India must expand international trade ties to reach $30 trillion economy vision by 2047: Piyush Goyal
Union Minister Piyush Goyal stated that India must expand international engagement to achieve its USD 30 trillion economy goal by 2047. He highlighted that developed nations' demographic challenges present opportunities for India's skilled workforce and that strategic partnerships will complement, not compete with, Indian industry.
States must leverage trade pacts to attract investment: PM Modi
Prime Minister Narendra Modi encouraged regional leaders to enhance trade collaborations and simplify business operations, stressing the need for self-reliance alongside a commitment to clean energy for long-term progress. He challenged states to convert their demographic potential into a development powerhouse by investing in education and vocational training.
World Bank Raises India's FY27 Growth Forecast to 6.6%
India's economic growth forecast for FY27 has been raised to 6.6 percent by the World Bank. This positive outlook is driven by reduced US tariffs and anticipated benefits from new free trade agreements. While external demand may weaken due to global conflicts, domestic demand and export growth are expected to pick up.
India to remain fastest-growing major economy at 6.6 pc in FY27, down from 7.2 last year: World Bank
India will remain the world's fastest-growing major economy. Growth is projected to slow to 6.6 percent in fiscal year 2026-27. This moderation is due to higher energy prices and input costs. However, the economy is expected to rebound to 7.2 percent growth in fiscal 2027-28. Domestic demand remains robust, supporting economic activity.
World Bank cuts global growth forecast to 2.5%; India seen growing 6.6% amid Iran war
Global economic growth is set to slow to 2.5% this year. The World Bank attributes this to the Iran war, which has driven up energy prices and created uncertainty. Developing nations face a significant slowdown. While the US economy remains resilient, other countries are experiencing harder impacts. Disruptions in energy and fertiliser trade are a major concern.
ECB hikes interest rate by 25 bps, first since 2023 to tame Iran war inflation
The European Central Bank raised its benchmark interest rate by a quarter point to 2.25 percent, marking its first hike since 2023. This move aims to combat accelerating inflation, driven by the Middle East war's energy shock, despite concerns for the struggling eurozone economy. The ECB also lowered its growth projection for the year.
Why the G7 is worried about global economic imbalances
In a pivotal discussion at the G7 summit, France is highlighting urgent concerns about the global economic landscape. China's robust exports contrast sharply with the U.S.'s mounting deficits, while Europe's investments appear to be lagging. These inconsistencies pose risks for escalating trade disputes and financial unrest.
India's economic growth rate to weaken at 6.6% in FY27 on slower investments, consumption: BMI
India's economic growth is expected to moderate to 6.6 percent in the current fiscal year. This slowdown follows a robust 7.7 percent growth in the previous year. Weaker investments and consumption are key factors. Trade disruptions from the West Asia crisis also pose challenges. The Reserve Bank of India's growth estimate aligns with this projection.
For Viksit Bharat, next decade must be one of excellence, not just achievement: PM Modi
Prime Minister Narendra Modi addressed the NDA Conclave, celebrating his tenure as India's longest-serving elected Prime Minister. He detailed the NDA government's work over 12 years and outlined ambitious plans for the future. Modi emphasised collective effort and India's economic progress, contrasting it with past governance. NDA leaders passed a resolution of gratitude for his leadership.
US inflation hits three-year high at 4.2% in May amid high energy prices
America's consumer prices surged in May, reaching their highest in three years. This jump, fueled by rising gasoline costs due to Middle East conflict, gives the Federal Reserve reason to hold interest rates steady. Inflation is outpacing wages, impacting household finances. This economic trend presents challenges for President Donald Trump's administration ahead of upcoming elections.
Indian banks better placed than APAC peers: Fitch on West Asia woes
India's banking sector is resilient against the economic impact of the US-Israel conflict with Iran, according to Fitch Ratings. While other APAC nations face pressure from rising fuel costs and slower growth, India maintains a neutral outlook. However, small borrowers might experience strain if oil prices continue to surge, impacting domestic demand and consumer spending.
Tata Consumer crosses Rs 20,000 crore revenue mark in FY26, net profit up 20%
Tata Consumer Products achieved a significant milestone, crossing ₹20,000 crore in revenue for FY26. The company reported a 15% revenue increase and a 20% rise in net profit. Growth was broad-based across India and international markets. Tata Consumer is well-positioned to capitalize on India's consumption growth story. The company noted global economic shifts and trade developments.
Stock-pay boom amplifies US economic drumbeat: Mike Dolan
Rising stock prices are increasingly impacting U.S. worker compensation, particularly in the technology sector, where stock-based compensation (SBC) now constitutes a significant portion of pay. This trend, which has transformed high-skilled labor into 'human capitalists,' may be a key factor in the economy's resilience despite broader uncertainties, as it boosts consumer spending among top earners.
Higher gasoline prices likely pushed up US consumer inflation again in May
May is poised to bring a notable rise in consumer prices across the United States, signaling the steepest hike in three years. Fueled by escalating energy costs, this inflation surge may prompt the Federal Reserve to hold current interest rates. Families could experience mounting financial burdens as prices rise faster than their earnings.
Despite geopolitical crisis, India's economic fundamentals and strategic partnerships will sustain growth: World Bank
India's economy shows strong growth potential. The World Bank believes this momentum will continue. Investments in people and businesses are key. Expanding international partnerships also supports this growth. India's favorable business environment attracts investment. The large consumer base and trade agreements offer opportunities. The food processing sector is particularly promising for future expansion and rural job creation.
Fitch cuts FY27 growth projection to 6.4%; US-Iran war to slow down economy
Fitch Ratings has reduced India's GDP growth projection to 6.4 percent for the current fiscal year. The US-Iran war is expected to slow economic activity in the September and December quarters. Rising prices will dampen consumer spending. For FY28, growth is expected to pick up to 6.7 percent. Fitch also anticipates the Reserve Bank of India will increase interest rates.
Indian economy, government finances, see mounting costs from Iran war
India's economy, once humming with benign inflation and steady growth, now faces mounting costs from the Iran war. As a major oil importer, disruptions to supply and elevated prices are impacting growth, inflation, and government finances. The central bank's ability to manage these shocks is increasingly difficult.
India can grow over 8% despite oil shocks, crude impact overblown in narrative: World Bank exec
India's economy shows strong growth, defying fears of oil price shocks. Neelkanth Mishra, World Bank Executive Director, states India is well-positioned to handle higher oil prices. Domestic demand remains robust, with positive indicators in car sales and mall footfalls. India's refining capabilities offer a buffer, mitigating the impact of crude price increases. Growth is projected to remain strong, near 7.5-8%.
Charting the global economy: Jobs, inflation feed rate-hike bets
Strong hiring across sectors and expanding manufacturing activity signal labor market strength, while upcoming US price data and ECB decisions will shape market sentiment.
India-US trade deal could further boost already vibrant trade corridor: Citi India CEO
A proposed India-US trade agreement is set to enhance trade and investment. Citi India CEO K Balasubramanian expressed optimism about this pact. He highlighted the strong India-US economic corridor, a key market for both nations. This agreement is anticipated to further invigorate existing trade. India's economic growth remains robust, outpacing many large economies globally.
OECD warns prolonged Middle East war could sharply slow global growth
The global economy faces uncertainty due to the Middle East conflict. The OECD warns of recession and rising inflation if the war continues into next year. A prolonged conflict could significantly slow global growth. Asian nations heavily reliant on Middle East energy supplies are expected to face the biggest impact. Central banks may need to raise interest rates.
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