fiscal deficit

He’s basically preparing the country for tough decisions GOI has to take. Aside from fuel price hikes, there may be some mild curbs. But extravagant poll promises by all winning parties, including BJP, make economic management that much tougher

GOI should let the economy adjust to new energy market realities, and raise pump prices. Lower domestic fuel consumption will also mean less dollar demand & help shore up the rupee

Fuel prices in India saw their first hike in four years, with petrol and diesel increasing by Rs 3. This move aims to alleviate significant daily losses incurred by oil marketing companies, estimated at Rs 1,000 crore. While consumer inflation may see a slight uptick, the fiscal impact is considered minimal, with annual consumption expected to recover.

The CEA’s words could not be more direct and the situation the world’s sixth largest economy faces is by no means small. Several macroeconomic indicators are in focus; inflation, health of the current account, and the exchange rate.

India is no stranger to austerity measures. Every time the country needs to tighten its belt, leaders seize the opportunity to present themselves as making sacrifices and sharing in the hardships of ordinary citizens

Pakistan's economy faces sustained pressure with double-digit inflation likely to persist due to surging global oil prices amid the Middle East crisis. Rising energy costs and regional instability are projected to slow GDP growth and widen the current account deficit, impacting the stock market and currency.

Few state polls have been as dramatic as this round. TOI explains the verdicts through 10 decisive factors, from freebies becoming entitlements to women’s safety, and from Hindu vote to Gen Z angst

Recent state election results reveal a resurgence of anti-incumbency, Hindu vote consolidation, and the enduring appeal of Narendra Modi. Factors like women's safety concerns, the rise of cash transfer schemes, and Gen Z's political awakening also played significant roles. The article delves into these ten decisive elements shaping India's electoral landscape.

India's economy shows resilience amidst global turmoil. SBI Research projects strong GDP growth between 6.8% and 7.1% for FY27. The nation navigates oil shocks from a position of strength. Domestic fundamentals provide a buffer. Potential risks like Super El Nino are noted. Inflation is expected at 4.5% with fiscal deficit around 4.5-4.6%.

India's state-run oil companies are incurring significant losses, estimated at Rs 18 per litre on petrol and Rs 35 on diesel, due to unchanged retail prices amidst volatile global crude oil prices. Despite a government excise duty cut, these firms continue to face mounting financial strain, with potential price hikes anticipated post-state elections.

India remains committed to its fiscal deficit target for 2026-27, prioritizing capital expenditure despite Middle East tensions impacting oil prices. While austerity measures are considered, crucial infrastructure projects are protected. Officials suggest subsidy targeting and savings could offset added fiscal pressure, but economists warn of potential slippage if fuel prices remain capped.

S&P Global in its latest report titled India's Strong Fundamentals Would Cushion The Blow Of An Oil Shock says India is equipped to handle some strain. The report assumes a base case scenario of oil prices at an average of $130 per barrel for 2026 and $100 in 2027.