Indicators
Home cooked meal prices inch up in August as compared to July: Report
In Mumbai, the cost of home-cooked meals increased in August. This rise is mainly due to soaring tomato prices. Vegetarian meals saw a 4% increase, while non-vegetarian meals rose by 2%. Tomato prices surged by 26% because of reduced supply. However, potato and onion prices remained stable. Compared to last year, meal prices are lower due to benign commodity prices.
India’s unemployment rate is 2%, says Mandaviya citing WEF report
Union Minister Mansukh Mandaviya states India has the lowest unemployment rate among G20 nations. The Labour Ministry partners with Mentor Together and Quikr to boost job opportunities. The PM-VBRY scheme allocates funds to create over 3.5 crore jobs. NCS is a key platform for employment facilitation. The government focuses on youth with schemes supporting employment and skilling.
Nominal GDP growth may miss FY26 target on soft inflation: CEA V Anantha Nageswaran
Chief Economic Advisor V Anantha Nageswaran anticipates a potential shortfall in nominal GDP growth compared to the budgeted 10.1% due to benign inflation. However, he remains optimistic about achieving the real GDP growth target of 6.3-6.8% despite US tariffs. GST reforms, expected good harvest, and direct tax relief should boost consumption.
Spurt in consumption to drive revenue buoyancy, to meet fiscal deficit target of 4.4%: Sitharaman
Finance Minister Nirmala Sitharaman anticipates that increased consumption will offset the Rs 48,000 crore GST shortfall resulting from tax rate reductions. She believes this consumption boost, along with strong Q1 GDP growth, could surpass the projected 6.3-6.8% GDP growth for FY26. The GST overhaul, effective September 22, aims to benefit all citizens through rationalized tax rates on various products.
India Inc revenue to grow 7% this fiscal on GST restructuring, but profit margins may remain flat: Crisil
Crisil Intelligence expects India Inc’s revenue to grow 6–7% this fiscal, driven by GST rate cuts boosting consumption, especially in FMCG, durables, and automobiles. However, the anti-profiteering rule may limit margin gains.
GST reforms will mitigate the US tariff impact on the Indian Economy
Yogesh Mandhani, President of AIIFA, stated that GST reforms have lessened the impact of US tariffs on India's economy and advocated for mining policy reforms to lower steel production costs by increasing iron ore availability. He also urged for power tariff rationalization and emphasized that targeting export markets could boost the capacity utilization of secondary steel producers, currently at 68-70%.
India’s forex reserves up by $3.51 billion to $694.2 billion in week ending August 29
India's forex reserves witnessed an increase of $3.51 billion, reaching $694.2 billion in the week ending August 29, according to RBI data. This rise was driven by an increase in foreign currency assets, gold reserves, and SDRs. The RBI intervenes in the forex market to manage rupee volatility, focusing on maintaining orderly market conditions.
Will Indian economy ride GST rate cut boost or capex push?
India's tax policy reset, featuring personal tax relief and GST simplification, sparks debate on the nation's growth trajectory. While some anticipate a consumption boost, particularly in discretionary sectors, others argue that investment in infrastructure will remain the primary driver. The government aims to encourage both consumption and private investment, noting a rise in private consumption's share of nominal GDP.
Festive GST bonanza may cool India’s inflation by up to 90 bps
India's GST Council has reduced tax rates on essential and household goods, effective September 22, coinciding with the festive season. Economists predict a 50-90 basis point moderation in inflation over the next year due to these cuts.
FY26 fiscal deficit pegged at 4.4%: Math unlikely to be hit despite GST cut
The Centre remains confident about maintaining its FY26 fiscal deficit at 4.4% of GDP, despite potential GST revenue losses. Anticipated consumption boom and expenditure reprioritization are expected to offset the impact. Nominal GDP growth exceeding budgeted targets could further aid in achieving the fiscal deficit goal, with budget-making exercise for FY27 commencing in October.
Must Watch
GST rate cuts will improve affordability and give a fillip to consumption: Morgan Stanley
Morgan Stanley anticipates a significant boost in consumption due to the GST structure rationalization, particularly benefiting low-income households. Effective from September 22, the simplified two-rate system will make various goods and services more affordable, coinciding with the festive season.
With GST 2.0, Govt's focus shift from capex oriented spending to consumption-led growth: Report
The government's GST 2.0 rationalization, effective September 22nd, 2025, marks a shift towards consumption-led growth, moving away from capex-focused spending. By reducing GST slabs and targeting tax relief for rural households and the middle class, the initiative aims to boost purchasing power and stimulate demand. Key sectors like consumer durables, building materials, and automobiles are expected to benefit.
India's service activity at 15-year high in August amid 49 straight months of order growth
India's service sector experienced remarkable growth in August, reaching a 15-year high with a PMI of 62.9, fueled by strong demand and new orders. This surge led to increased hiring, particularly temporary positions, and a rise in international sales from Asia, Europe, the Middle East, and the US.
Q1 FDI inflows up 15%, US top source of investment
India's Foreign Direct Investment saw a 15% surge, reaching $18.62 billion in the first quarter of FY26. The United States emerged as the leading investor, tripling its contribution. Singapore and Mauritius followed closely. The computer software and hardware sector attracted the most FDI. Karnataka secured the highest share of total FDI equity, followed by Maharashtra. Total FDI reached $25.
FDI up 15 pc to USD 18.62 bn in Apr-June FY26; inflow from US triples
Foreign Direct Investment in India increased by 15 percent, reaching 18.62 billion US dollars during April to June. The United States became the largest investor, contributing 5.61 billion US dollars. Karnataka received the highest inflow of investments. The government has implemented investor-friendly policies and reforms across various sectors. These reforms aim to liberalize FDI norms and attract more overseas investments.
India service sector growth hit 15-year high in August but inflation intensifies: PMI data
India's services sector experienced a significant surge in August, reaching a 15-year high driven by robust demand. This surge also led to the fastest increase in prices in over a decade. Business confidence improved, fueled by advertising plans and positive demand forecasts, despite modest employment growth. The Composite PMI hit a 17-year high, indicating broad economic momentum.
