Macro

The RBI and the government have launched a coordinated push to attract foreign capital, but the latest measures may be only the beginning.

Major state-run lenders reported lower employee-to-branch ratios between FY22 and FY26 while outlining plans to automate processes, expand digital banking and deploy AI tools.

The economist and PM-EAC member says India's domestic demand-driven growth model has helped it withstand major global shocks over the past decade.

Nageswaran underscored that while global uncertainty continues to weigh on capital flow dynamics, India's growth outlook remains resilient.

On Friday, The Nifty 50 closed 49.85 points, or 0.21%, lower at 23,366.70. The Sensex ended 116.67 points, or 0.16%, down at 74,243.34.

The government has also exempted foreign investors from capital gains and withholding tax on G-Secs.

Bank credit growth decelerated from 20.2% in FY24 to approximately 11% in FY25.

The RBI may also announce measures to support the rupee, which approached the 97-per-dollar level last month.

Gita Gopinath described the central bank's stance as appropriately data-dependent, balancing inflation concerns against signs of moderating economic activity.

Governments will have to understand the economic realities of AI: stock market booms and soaring productivity will likely coexist with fewer jobs, sharper class divides and mass layoffs.

India plans to cut taxes on global funds investing in its bonds and may remove the 20% interest levy to attract more foreign investment, pending cabinet approval.

Bank lending in India grew at 16.2% through mid-May, the fastest in nearly two years, as companies prefer cheaper bank loans over rising-cost bonds amid higher sovereign yields.

In 2019, the government merged the Council of Trade Development and Promotion with the Board of Trade to bring greater coherence in stakeholder consultations on promoting exports and imports.

Government to publish WPI and the new Producer Price Index side by side for five years before retiring the wholesale inflation gauge and adopting a globally aligned pricing framework.

The RBI had earlier projected consumer inflation at 4.6%. Under the higher crude oil scenario, inflation could move closer to 5%, Bhandari noted.

A stock market correction, however painful, does limited lasting damage to the real economy. A currency crisis is a different beast entirely.

The report argued that India's manufacturing strategy should focus on segments where the country has structural advantages and can rapidly substitute imports without taking on unsustainable capital exposure.

Digital payments hit new highs, but cash use is rising too.

RBI GDP forecast for FY27 is higher than the International Monetary Fund's projection of 6.5% for the same period.

RBI tests tokenised certificates of deposit on a new platform, while widening digital rupee pilots for subsidies and cross-border payments.