Economy

Forex reserves post record $18.34 billion weekly fall as RBI supports rupee

• Reserves fell $18.34 billion to $747.56 billion, the biggest weekly decline on record
• Moneycontrol reports reserves at $757.46 billion; other reports give $747.56 billion
• Rupee pressure and reserve drawdown matter for banks, importers and oil companies

Investing in resilience is economically rational, says Principal Secretary PK Mishra

• PK Mishra said investing in resilience is economically rational amid uncertainty
• He made the remarks at the 5th Kautilya Economic Conclave

The week in charts: Lower foodgrain target, deficient rains, cheaper stocks

• The weekly chart compilation covers a lower foodgrain target, deficient rains and cheaper stocks
• Deficient rains and lower grain targets may raise food-price risks for Indian consumer companies

Rs 60,000 Crore Drought Loss? Karnataka Seeks Relief As Central Teams Assess Damage

• 217 taluks have been declared drought-affected
• Losses in 177 taluks are assessed at about ₹46,000 crore
• Drought losses put Karnataka agriculture and rural demand at risk

35 years after liberalisation, India’s global integration remains a work in progress, says Shankar Sharma

• India’s post-1991 economic transformation has lifted its global standing
• The pace of improvement remains gradual

RBI Governor: Today's resilience may not imply tomorrow's immunity

• The RBI Governor said today’s resilience may not imply immunity in the future
• India is navigating the West Asia crisis from a position of strength and taking steps to build resilience

Democracy makes India's economic reforms durable, says vice-president

• C P Radhakrishnan said consensus-building can slow decisions but makes reforms sustainable
• He warned that growth benefits must reach everyone
• Durable reforms shape the operating environment for Indian companies across sectors

U.S. debt could reach 160% of GDP within decade, Scope warns

White-collar hiring shifts towards specialised AI skills, experienced professionals in September: Report

• White-collar hiring is becoming more selective
• Demand is rising for specialised AI skills and experienced professionals

A tricky rate hike to consider, but change in RBI’s policy stance unlikely

Inflation eats away at wages, posing risk to consumer spending

Economists expect RBI to raise repo rate by 25 bps to 5.5%

• SBI economists expect a 25-bps hike, from 5.25% to 5.50%
• The MPC is scheduled to meet from October 5-7
• Higher rates may pressure rate-sensitive Indian sectors, including real estate and automobiles

India weathered global turbulence with fundamentals intact, says FM Nirmala Sitharaman

India’s growth must reach all to become a developed economy: VP Radhakrishnan

• C.P. Radhakrishnan said GDP growth alone is insufficient for a developed economy
• He stressed inclusion, formalization and women’s economic participation

UPI volume rises 27% to touch 145 billion in first half of FY27

• UPI volume rose 27% to 145 billion in the first half of FY27
• Volume was 114 billion in April-September of the previous financial year
• Rising digital payments activity puts Indian fintech and payment companies in focus

India’s resilience lies in adapting to geopolitical, trade, and technology shifts: VP Radhakrishnan

• Radhakrishnan said India is entering global uncertainty from a position of economic strength
• He cited real GDP growth of 7.8%

Datanomics: Services cushion shrinks as trade deficit pushes CAD deeper

• Q1FY27 current account deficit reversed the surplus seen in Q4FY26
• A deeper CAD can pressure the rupee and raise risks for import-dependent Indian companies

Don't blame El Niño alone

• This year's southwest monsoon ended with a 13% deficit over the long-period average
• A weaker monsoon raises risks for Indian agriculture and rural-demand-linked companies

8th Pay Commission Arrear calculator: These employees could face losses of up to ₹3.32 lakh — here's why

• Delays could cost central government employees up to ₹3.32 lakh in arrears and allowances
• The Eighth Pay Commission's report is anticipated by 2027

RBI Rate Hike Ahead? SBI Research Flags Inflation, Rupee Risks For October MPC

• SBI Research expects the RBI to begin raising rates in October
• It cites inflation, rupee weakness, global risks and tighter liquidity
• Higher-rate expectations may weigh on Indian borrowers and rate-sensitive stocks

Maharashtra signs 67 MoUs worth Rs 8.57 lakh crore, eyes 2.91 lakh jobs

India’s housing construction pipeline nearly doubles to $430 billion in 2025

• Housing construction value rose from $235 billion in 2019 to $430 billion in 2025
• The report attributes the increase to strong post-pandemic demand
• A larger housing pipeline supports demand for Indian cement, building materials and real-estate companies

'I am not an astrologer': Principal secy to PM declines to predict India's next GDP quarter

GDP alone cannot measure development, inclusion key to India's resilience: V-P Radhakrishnan

Budget 2024: India Union Budget 2024 Live Analysis, Interim Budget 2024 Key Announcements and Highlights

Falling wages, soaring energy prices and inflation: It’s beginning to look a lot like the 1970s

• The article compares current falling wages, rising energy prices and inflation with the 1970s
• It asks whether investors should return to the financial playbook used during that decade

Inflation target should align with advanced economy average of 2%: Patra

• Patra says India’s inflation target should align with the advanced-economy average of 2%
• He says anti-inflationary monetary policy makes the biggest contribution to growth
• A 2% target could affect RBI rate policy and Indian banks, lenders and rate-sensitive stocks

India’s GST revenue growth has lost momentum: What the post-2025 data shows

• GST collections remain robust in absolute terms, but revenue growth has slowed sharply from FY23 levels
• Slower tax growth may weigh on fiscal expectations and Indian rate-sensitive sectors

10 years of inflation targeting: How elephant was driven away to the jungle

• India’s inflation-targeting framework has anchored price expectations
• Economists see scope to refine the framework’s mandate
• Inflation-targeting changes could affect rate expectations for Indian banks and rate-sensitive stocks

Liberalisation gains petering out as India's inward-looking bias persists

• India's global percentile ranking has improved modestly since 1991
• Weak per capita gains and external vulnerability remain key drags
• Persistent external vulnerability matters for Indian exporters and rupee-sensitive companies

Weakest monsoon since 2015 prompts ICRA to cut FY27 farm growth forecast

• The 2026 southwest monsoon delivered 87% of the long-period average, the lowest rainfall since 2015
• Weaker farm growth may weigh on Indian agricultural input and rural-consumption companies

US economy adds just 29,000 jobs in September as hiring slows sharply

• The US economy added 29,000 jobs in September, as hiring slowed sharply
• US hiring weakness may affect Indian IT firms through client spending and Fed-rate expectations

India Forex Reserves Log Record Weekly Drop on Rupee Defense

Labor market faltered in September as jobs increased by just 29,000, unemployment rate rose to 4.2%

• US nonfarm payrolls rose by 29,000 in September, versus 84,000 expected
• Unemployment rose to 4.2%, from 4.1% expected
• A softer US jobs market may affect Indian IT exporters through client demand and global rate expectations

‘Workers growing increasingly anxious’: US adds 29k jobs, far below 90k expected

• US employers added 29,000 jobs in September, far below economists’ 90,000 expectation
• The unemployment rate rose to 4.2%
• Weaker US demand may weigh on Indian IT exporters’ growth prospects

US adds 29,000 jobs in September as unemployment rises to 4.2%

• Hiring fell from a revised 133,000 in August to 29,000 in September
• Unemployment rose to 4.2% from 4.1% in August
• US demand signals matter to Indian IT services companies reliant on American clients