India's defence budget is set for substantial growth, potentially reaching Rs 31.7 lakh crore by 2047, according to a CII-KPMG report. Defence production and exports are also projected to surge, positioning India as a key global supplier. Increased capital expenditure and R&D investment are expected, alongside a rise in defence's GDP share.
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India has exempted Saudi Arabia's Public Investment Fund (PIF) from certain foreign portfolio investment rules to attract long-term capital and strengthen financial ties. This move allows PIF's various arms to invest independently in Indian equity markets, bypassing the previous 10% ownership cap. It aims to boost Saudi Arabia's $100 billion investment plan in India, particularly in energy and infrastructure sectors.
The RBI's Monetary Policy Committee convened amidst expectations of a policy rate cut to bolster economic growth, influenced by global uncertainties. Analysts anticipate a 25-50 bps reduction in the repo rate, currently at 6%, following previous cuts. Experts believe easing rates will stimulate consumer spending, investment, and credit flow to MSMEs.
The European Central Bank is expected to announce its seventh consecutive interest rate cut amidst a struggling eurozone economy. Concerns over economic performance outweigh inflation worries, exacerbated by US President Trump's fluctuating trade policies. HSBC anticipates the rate reduction following recent US tariff announcements. While a quarter-point decrease is expected, analysts suggest a pause in July to evaluate economic trends.
The Indian auto industry is facing a potential production shutdown due to China's export restrictions on rare earth magnets, crucial for various vehicle components. Companies like Maruti Suzuki, Mahindra, and Bajaj Auto are at risk, with Bajaj Auto anticipating a significant impact on EV production by July.
Indian markets experienced a surge in foreign portfolio investments during May 2025, reaching Rs 19,860 crore, marking the strongest month for inflows this year. Despite a negative cumulative FPI investment of Rs 92,491 crore from January to May, the May inflows signal a potential shift in investor confidence, driven by a declining US dollar and positive market developments.
Bhavye Khetan, a UC Berkeley graduate, ignited a debate about startup funding by creating a fake founder persona. He secured responses from 27 VCs, with four requesting calls, despite having no product or pitch. Khetan's experiment highlights concerns that pedigree and buzzwords may overshadow substance in venture capital evaluations.
Economist S Mahendra Dev assumes the role of Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM), filling the vacancy since November. The council has been reconstituted for two years, retaining full-time members and inducting new part-time members. Dev, a development economist, brings extensive experience from academia and the financial sector.
Ola Electric's stock prices plunged following the release of disappointing quarterly results. The electric vehicle company reported a substantial net loss for the fourth quarter and the full financial year. Revenue from operations also experienced a sharp decline. Despite these challenges, Ola Electric expresses optimism about achieving profitability in the coming financial year.