Indian Economy

GLOBAL TRENDS & DOMESTIC DEVELOPMENTS The global manufacturing landscape in 2025 reflects an uneven recovery marked by geopolitical tensions, inflationary pressures, and supply chain realignments. While overall growth remains subdued, a structural shift toward high-technology and innovation-driven manufacturing is evident, with medium- and high-tech industries outperforming low-tech segments. Countries are increasingly focusing on strategic integration…

TRENDS IN SERVICES SECTOR The global economy is undergoing a structural transformation where the services sector has emerged as the primary engine of growth, resilience, and global integration. Unlike goods trade, which has stagnated due to geopolitical tensions and supply chain disruptions, services trade continues to expand, acting as a stabilising force. This shift has…

India’s agriculture and allied sectors remain central to economic growth, employment, and food security, contributing nearly one-fifth of national income while supporting over 46% of the workforce. The sector has demonstrated resilience with an average growth of about 4.4% in recent years, driven largely by allied activities such as livestock and fisheries. A structural shift…

Global inflation has moderated significantly after the post-pandemic surge, driven by easing commodity prices, supply-side improvements, and tighter monetary policies. Advanced economies now exhibit stable inflation near target levels, while emerging economies show varied outcomes. India stands out for achieving sharp disinflation alongside strong economic growth, reflecting effective macroeconomic management and credible inflation targeting. Domestically,…

GLOBAL TRADE DYNAMICS AND INDIA’S TRADE PERFORMANCE The global economic order is undergoing a structural transformation marked by rising protectionism, geopolitical fragmentation, and a shift from multilateralism to strategic bilateralism. Supply chains are being reconfigured to prioritise resilience, national security, and technological sovereignty over cost efficiency. Trade policy uncertainty has surged, driven by tariff wars,…

GLOBAL FINANCIAL MARKETS AND MONETARY DEVELOPMENT Monetary management and financial intermediation form the backbone of economic stability and growth, with the Reserve Bank of India (RBI) playing a central role in regulating money supply, interest rates, and liquidity. In a globally interconnected financial system, while globalisation has improved access to capital and reduced borrowing costs,…

CENTRAL GOVERNMENT FINANCES India’s fiscal trajectory in recent years reflects a carefully calibrated balance between growth and fiscal prudence, leading to enhanced macroeconomic stability and global confidence. The recognition of India’s fiscal resilience through sovereign credit rating upgrades underscores the success of sustained policy efforts, including deficit reduction, improved revenue buoyancy, and a structural shift…

GLOBAL ECONOMIC GROWTH – FRAGILE AND DIVERGING The global economy during 2025–26 has remained resilient in the short term despite multiple disruptions, particularly the imposition of tariffs by the United States. Initial concerns regarding slower growth and higher inflation proved temporary due to mitigating factors such as trade adjustments, delayed tariff implementation, and pre-emptive spending…

The 16th Finance Commission (16th FC), chaired by Arvind Panagariya, has submitted its report for the award period 2026-31. The recommendations, tabled in Parliament alongside the Union Budget 2026-27, signal a significant shift from “entitlement-based” transfers to “compliance-driven” fiscal federalism.  Summary Key Recommendations of the 16th Finance Commission (2026–31) Tax Devolution:   Criteria for Distribution of Central Taxes among States Criteria 15th FC…

The Foreign Trade Policy 2023 is essentially India’s roadmap to expand its presence in global trade while supporting domestic industries, MSMEs, and new sectors. Target of the Foreign Trade Policy 2023 The most important objective of FTP 2023 is: Target:India aims to achieve $2 trillion in exports of goods and services by 2030. To appreciate…