Topic
consumption
Business GST Rate Reset Drives Consumption Boost and Higher Tax Collections in India
India's GST rate rationalisation, the biggest reset since the tax's launch, has spurred consumption and increased monthly tax collections to an average Rs 1.1 lakh crore, up from Rs 1.01 lakh crore, despite the average tax rate falling from 14.4% to 12.8%. Taxable supply rose over 22% post-reset, with volume growth of up to 60% in precious metals and 21% in vehicles.
Commodities IEA forecasts global natural gas demand to fall 0.5% in 2026 as higher prices curb consumption
The International Energy Agency (IEA) forecasts global natural gas demand to fall 0.5% in 2026, driven by higher prices curbing consumption from power generators and industry. The U.S.-Iran conflict has sharply reduced LNG flows through the Strait of Hormuz, pushing up benchmark prices in Europe and Asia. Asia gas demand fell 1% year-on-year in the first half of 2026 as fuel switching to coal accelerated.
Business India GDP Growth to Slow to 6.6% in FY27 on Weaker Consumption and Investments:
BMI forecasts India's economic growth will moderate to 6.6% in fiscal year 2026/27, a slowdown from the 7.7% recorded in FY26. The research firm attributes the deceleration to three factors: fading consumption boost from GST reforms, elevated inflation driven by the Strait of Hormuz disruption, and slowing investment growth. The rupee is expected to average 95.1/USD, supporting export competitiveness.
Business Strong Consumption Drives Steady Growth Amid Iran Conflict Costs
India's economy maintains steady growth driven by strong domestic consumption, despite challenges from the West Asia conflict. The government is focusing on attracting foreign investment and asset sales to boost revenue.
Trade RBI Warns Monsoon Deficiency May Impact India's Trade
The Reserve Bank of India warns that a projected monsoon deficiency may affect rural demand and consumption, potentially impacting trade. The RBI has adjusted its GDP growth forecast for FY27 to 6.6% amid global supply chain disruptions.