UBS has revised India's FY26 GDP growth forecast upwards to 6.4% from 6%, citing resilient domestic demand and potential trade benefits. This adjustment considers factors like eased tariffs on Chinese imports and a possible US-India trade deal. While anticipating robust household consumption, UBS foresees a slight slowdown in capital expenditure due to global uncertainties.
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India's Ministry of Heavy Industries has launched the “Scheme to Promote Manufacturing of Electric Passenger Cars in India” (SPMEPCI) to attract EV manufacturing investments. The scheme offers reduced customs duties on imported EVs for approved applicants who meet minimum investment and localization targets.
The OECD projects India's economy to expand by 6.3% in 2025-26 and 6.4% in 2026-27, remaining the fastest-growing G20 economy despite global uncertainties. While private consumption and investment are expected to remain strong, export growth may moderate due to weaker global demand and trade policy uncertainty.
Raamdeo Agrawal predicts Sensex reaching 1.5 lakh by 2030 and 3 lakh by 2035. He attributes this to consistent domestic capital inflows. Agrawal highlights quick commerce, capital markets boom, energy transition, and manufacturing as key investment themes. He advises caution, emphasizing buying at the right price. Agrawal notes the shift in market structure with increasing domestic participation.
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.
Maruti Suzuki India announced a record-breaking achievement, transporting 5.18 lakh vehicles via Indian Railways in FY 2024-25. Since FY 2014-15, cumulative railway dispatches have reached 24 lakh vehicles, servicing over 600 cities through 20-plus railway hubs. By FY 2030-31, the company aims to increase vehicle dispatches via railways to 35 percent, reducing carbon emissions and conserving fuel.
President Trump's impending tariff hike on steel and aluminium imports, effective June 4, is projected to significantly impact Indian metal exports, potentially costing $4.56 billion. The increased duties are expected to diminish the competitiveness of Indian manufacturers in the US market. India has notified the WTO and is considering further actions in response to the tariff increase.
The rupee weakened by 7 paise to close at 85.55 against the US dollar, influenced by volatile equity markets and rising crude oil prices. Investors were cautious ahead of GDP data release, while the dollar strengthened after a US court ruling on tariffs. Despite FII selling, India's growth outlook remains robust, as highlighted by the RBI.
IATA forecasts airlines to achieve a combined profit of $36 billion in 2025, a rise from $32.4 billion in 2024. Director General Willie Walsh cautioned against geopolitical disputes affecting airspace and highlighted supply chain challenges. India hosted the AGM for the first time in 42 years, with the next one scheduled for Brazil in 2026.
WTO chief Ngozi Okonjo-Iweala acknowledged disruptions to the multilateral trading system and urged India to support China-backed investment facilitation, despite India's opposition. She emphasized India's leadership role for the upcoming MC14, particularly in agriculture, while highlighting the need to address India's concerns in that sector. Reform discussions are anticipated at the mini-ministerial meeting.
Udaan, a B2B ecommerce platform based in Bengaluru, has secured $114 million in funding led by M&G Investments and Lightspeed. The company intends to use the capital to strengthen its presence in the FMCG and staples categories. While maintaining a valuation of $1.8 billion, Udaan reported a revenue growth of over 60% year-on-year in 2024.