ECONOMIC GROWTH
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.
Japan revises Q2 GDP higher on brisk consumer spending
Japan's economy showed robust expansion, growing at an annualized rate of 2.2% in the April-June period, significantly exceeding initial estimates due to upward revisions in consumption. While this growth signals positive momentum, political uncertainty following Prime Minister Ishiba's resignation and the impact of U.S. tariffs remain key concerns. A recently formalized trade deal with the U.S.
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.
New GST rates, coming into effect this Navratri, to boost economy: Ashwini Vaishnaw
Union Minister Ashwini Vaishnaw announced that the 2025-26 Budget's income tax relief and GST rate rationalization will significantly boost India's economy. Effective September 22, the GST reforms will simplify taxation, reduce rates on daily-use goods, and stimulate consumption, potentially adding Rs 20 lakh crore to the GDP.
US bond market may be too sanguine about underlying fiscal, inflation risks
Some investors are worried about the United States bond market. They see risks from recent market moves. They are concerned about White House pressure on the Federal Reserve. This pressure is for interest rate cuts. Investors also worry about long-term fiscal risks. The bond market's health is a concern. Some think the market is underpricing risks.
US stocks end lower as jobs data fuels economic worries
The U.S. economy created 22,000 jobs last month instead of an estimated 75,000, confirming softening labor market conditions, according to the Labor Department report. The three major U.S. stock indexes initially rose and broke records following the data, as traders of futures tied to the Fed's policy rate boosted bets that the U.S. central bank will trim rates in quick succession, starting this month, with a 50-basis-point easing now on the table.
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Industry must pass on GST gains to buyers: Piyush Goyal
Piyush Goyal urges industry to pass on GST reduction benefits to consumers, anticipating boosted demand, exports, and economic growth. GST reforms, effective September 22, are expected to lower input costs for MSMEs and exporters, reducing inflationary pressures. India is also diversifying export markets amid US tariffs, exploring opportunities with countries like UAE and Singapore.
US services activity in August expands at fastest pace in six months
US service providers experienced robust growth in August, marked by the fastest expansion in six months, according to the Institute for Supply Management. A significant surge in new orders fueled this growth, reaching its highest point since September. However, service providers are grappling with persistent inflationary pressures, particularly concerning material costs.
A GST 'Budget' for aspiring citizens
The Indian government has implemented significant economic reforms. These reforms include GST rate rationalization and structural changes. The aim is to boost India's competitiveness and economic growth. Rate reductions on essential goods will benefit citizens. This will lead to increased consumption and GDP growth. Simplified tax structure and trade facilitation are also key components. MSMEs will experience easier business operations.
GST rationalisation progressive step, big booster to India's economic growth: Mukesh Ambani
Mukesh Ambani welcomes the government's GST reforms. He says it will boost India's economic growth. Isha Ambani states Reliance Retail will pass on the benefits to customers. The GST changes aim to make products cheaper and simplify business. Reliance Retail commits to transparently sharing cost reductions with consumers. The company believes this will benefit various stakeholders and strengthen consumer confidence.
Bankers say GST Council decision to boost consumption, credit growth
Bankers anticipate that the GST Council's recent decisions, including reduced tax rates on various goods, will significantly boost consumption and credit expansion. This reform, effective September 22, 2025, is expected to increase disposable incomes, stimulate demand across sectors like retail and agriculture, and ultimately drive substantial economic growth. Businesses will also benefit from simplified compliance and improved competitiveness.
GST 2.0 to unleash consumption, cushion India's economy from US tariff headwinds: India Inc
Industry leaders believe that GST rate rationalization will boost India's economic growth. They expect increased consumption and a cushion against global headwinds. The GST Council approved rate changes, effective September 22. Business leaders like Ashok Hinduja and Anand Mahindra support the reforms. FICCI and CII anticipate improved compliance and consumer benefits.
Consumption boost and GST reforms set to drive economic growth and sectoral gains: Sunil Subramaniam
India’s economic landscape is poised for a significant uplift following the government’s recent policy announcements aimed at boosting consumption and reducing GST burdens.
GST revamp to add 30 bps to growth, say economists
India's economic growth is projected to receive a 0.2-0.3% boost due to the recent GST rationalization, simplifying the tax structure to two main slabs. Experts anticipate strengthened consumption, particularly benefiting the middle class with reduced rates on essential items and electronics.
New Zealand PM Christopher Luxon courts multinational investment at Ikea store opening in Auckland
Prime Minister Christopher Luxon promoted New Zealand's streamlined investment processes to multinational companies at Ikea's flagship store opening in Auckland. The government cites fast-track approvals and reduced bureaucracy as key advantages for international investors seeking business opportunities
China's services activity growth hits 15-month high in August, private PMI shows
China's service sector experienced its fastest expansion since May 2024 in August, fueled by stronger domestic demand and a rebound in foreign orders, according to a private-sector survey. Despite this growth, service providers faced rising input costs, leading to staff reductions and pressure on profit margins. Overall business confidence improved with increased new business and activity.
US economy: How can such good numbers cause such bad vibes?
Despite strong GDP growth, low unemployment, and a booming stock market, the US economy feels unsettling due to persistent inflation and emerging uncertainties like AI and trade shifts. While consumers initially benefited, rising debt and defaults, coupled with housing affordability issues, contribute to a sense of vulnerability.
PM Modi calls out 'economic selfishness' of other nations; lauds India's GDP growth
Prime Minister Narendra Modi on Tuesday hailed India’s 7.8% GDP growth in Q1 FY26, saying the country has remained resilient amid global uncertainties and “economic selfishness.” He described the growth as broad-based and visible across all sectors, saying it strengthens India’s path to becoming the world’s third-largest economy.
Manufacturing activity expands to 17-year high in August
India's manufacturing sector experienced a significant surge in August, reaching a 17.5-year high with a PMI of 59.3, fueled by robust growth in production and new orders. Domestic demand cushioned the impact of increased US tariffs on Indian goods, while manufacturers increased input buying and hiring in response to rising output requirements.
India Inc needs to step up investment in order to reach the desired 8% growth rate: RBI's former Deputy governor
Former RBI Deputy Governor Michael Patra urges Corporate India to increase investments to sustain the nation's 8% growth trajectory. He highlighted that while India's GDP surged by 7.8% in Q1 FY26, investment is crucial for continued capital accumulation. Government efforts to boost consumption through GST reforms and income tax reductions are vital in the current economic climate.
India’s surprise GDP flattered by data calculation, analysts say
India's recent strong economic growth of 7.8% in the April-June quarter is likely overstated due to statistical factors, particularly a lower deflator. Economists suggest the deflator, influenced by volatile food prices and wholesale price index, artificially inflated the headline figure. Despite the boost, the economy faces challenges from increased US tariffs, potentially impacting growth forecasts for the fiscal year.
Domestic demand surge lifts India's GDP growth: Experts
India's real GDP surged to a five-quarter high of 7.8% in April-June 2025-26, driven by strong domestic demand and increased government spending. Private consumption, fueled by healthy rural demand and rising wages, boosted both manufacturing and services sectors. Despite global challenges, India's robust growth trajectory positions it as an inspiring icon of resilience and transformative opportunities.
Govt working on solutions to mitigate impact of US tariff hike: DEA Secy Anuradha Thakur
The government is formulating an action plan to address the US tariff hike's impact on employment-heavy sectors. Steps are underway to boost domestic demand through tax reforms, GST rationalization, and leveraging a strong monsoon. Despite temporary fiscal mismatches, the government remains confident in achieving its 4.4% fiscal deficit target, supported by robust economic fundamentals and strong GDP growth.
Indian economy to sustain high growth momentum in coming quarters: CEA Nageswaran
CEA V Anantha Nageswaran anticipates continued high growth momentum from India's economy, building on the 7.8% growth in the first fiscal quarter. He acknowledges potential downward pressure from recent US tariffs imposed in August, but expects these to be short-lived due to ongoing negotiations. Anticipation of GST tax relief and a strong monsoon season are expected to offset tariff impacts.
Centre's fiscal deficit until July widens to 29.9% of FY26 target
India's fiscal deficit widened to 29.9% of the annual target by July, driven by increased capital expenditure and a 7.5% contraction in net tax revenue. While revenue spending rose 17.1%, capital expenditure surged 32.8% to spur economic growth. Experts believe the government can still meet its 4.4% deficit target for 2025-26, despite a July deficit of ₹1.88 lakh crore.
GST reforms, festive season may spur demand: CEA V Anantha Nageswaran
India's chief economic advisor anticipates festive season and GST reforms to bolster domestic demand, despite concerns over US tariffs impacting exports and capital formation. The Indian economy expanded by 7.8% in the June quarter, exceeding expectations, and is projected to maintain a 6.3-6.8% growth rate this fiscal year.
Economists see slow US growth, stubborn inflation well into 2026
Economists predict sluggish US economic growth through 2026, hampered by tariff-driven inflation impacting consumers. GDP growth is projected to slow to 1.1% in the second half of the year, with consumer spending mirroring this pace. Despite expectations of easing inflation, it will likely remain above the Federal Reserve's 2% target, posing challenges for monetary policy.
Russia slashes 2025 economic growth forecast to 1.5% from 2.5%
Russia's economic growth is projected to slow to 1.5% in 2025, significantly lower than the initial 2.5% forecast, as high interest rates implemented to combat inflation have curtailed borrowing.
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