Topic
economic growth
Business US economy slows as GDP growth slips to 1.5%, consumers keep momentum alive
The US economy grew at an annual rate of 1.5% in Q2 2026, slowing from 2.1% in Q1 and missing expectations. Consumer spending accelerated to 3.2% but a surge in imports—up 11.5%—deducted 1.5 percentage points from growth. Inflation continued to ease, with the PCE index rising 3.7% year-on-year, still above the Fed's 2% target.
US economic growth slows to 1.5% in second quarter, missing analyst estimates
The US economy grew at an annual rate of 1.5% in the second quarter, according to the Commerce Department, down from 2.1% in the first quarter and below analyst expectations. The slowdown was driven by lower government spending, investment and exports, though consumer spending provided a boost. The Federal Reserve held interest rates for a fifth consecutive meeting, with Chairman Kevin Warsh warning of persistent inflation.
Business GST Boost: Maharashtra Emerges as India’s Top State Tax Contributor, Says India Ratings
Maharashtra has become the largest contributor to state tax revenue under GST, driven by high consumption and a large services sector. India Ratings & Research reports a sharp improvement in tax buoyancy and a doubling of the taxpayer base since the reform. The state's share rose to 20.4% in the post-GST period.
Business India's Factory Output Surges 7.3% in June, Fastest Pace in Nearly Two Years
India's factory output rose 7.3% in June, the fastest pace in nearly two years, driven by manufacturing (7.8%) and electricity (10.6%). The data exceeded economists' forecasts of 5.7%, signalling strong first-quarter GDP growth of 6.8-7%.
Business India's Industrial Production Surges 7.3% in June, Led by Manufacturing and Power Sectors
India's Index of Industrial Production (IIP) expanded 7.3% year-on-year in June 2026, accelerating from 5% in May, according to the National Statistics Office. Manufacturing output grew 7.8%, while electricity & gas supply surged 10.6%. Within manufacturing, 19 of 23 industry groups posted positive growth, led by electrical equipment (34%), motor vehicles (17.5%), and food products (10.8%). Chief Economist Aditi Nayar of ICRA Ltd noted broad-based acceleration and robust investment activity.
Business Karnataka Sees Fastest FDI Rise Among Major States as Inflows Nearly Double to $13 Billion
Karnataka recorded the fastest FDI growth among major Indian states, with inflows nearly doubling to $13 billion in the last financial year, driven by tech investments and global capability centres. Maharashtra, the top destination, saw a dip, while Gujarat remained flat at $5.7 billion. Sector-wise, computer software/hardware and services led inflows.
Trade India's Growth Strong but Trade Barriers Threaten 2047 Goal: WTO Trade Policy Review
A WTO Trade Policy Review report highlights India's strong economic growth as the fastest-growing G20 economy, with GDP projected at 6.8-7.2% for FY2027-28. However, it warns that structural challenges including high trade costs, tariffs, and regulatory complexity must be addressed for India to achieve its Viksit Bharat vision of becoming a developed nation by 2047. The report notes India's record exports of $863.1 billion in 2025-26 and a strategic shift towards free trade agreements.
Business India's Core Sector Grows 5% in June, Fastest in Five Months on Iron Ore Boost
India's expanded core sector grew 5% in June 2026, the fastest pace in five months, driven by a 43.9% surge in iron ore and 9.8% cement growth. Energy-intensive sectors such as crude oil, natural gas, and refinery products continued to contract, while fertiliser production fell for the fourth straight month. The data, based on a revised base year 2022-23, showed Q1 FY27 core sector expansion of 3.6%.
UK Economy Returns to Modest Growth in May After April Contraction, ONS Reports
The UK economy grew by 0.1% in May, driven by the services sector, after a slight contraction in April attributed to the US-Israel war with Iran, according to the Office for National Statistics. In the three months to May, the economy grew 0.7% compared with the previous three-month period.
Trade China's Exports Surge 27% in June on AI Boom, Trade Surplus Widens to $125.6 Billion
China's exports surged 27% year-on-year in June, far exceeding expectations, driven by booming AI-related product and semiconductor demand, according to customs data. Imports rose 36%, partly due to higher costs from the Iran conflict, widening the trade surplus to $125.6 billion from $105.4 billion in May.
Commodities KAU Vice-Chancellor: Value-Added Local Products Can Unlock Kerala's Rural Economic Growth
Kerala Agricultural University Vice-Chancellor T. Sajitha Rani inaugurated a training programme emphasizing value-added local products to enhance farmers' income and stimulate the rural economy. The event also saw the flagging off of the sixth export consignment of value-added food products to the UAE, resuming after a disruption in the Strait of Hormuz.
Business India needs 7-8% annual growth to achieve Viksit Bharat target by 2047: EAC-PM's Dev
India must maintain an annual growth rate of 7-8% to realise the Viksit Bharat vision by 2047, according to S Mahendra Dev, Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM). He highlighted the need for a resurgence in private investment, strong export growth, and agricultural diversification. Dev also addressed fertilizer reforms and inflation projections.
Trade India-Latin America Trade to Reach USD 100 Billion by 2030 from USD 50 Billion: Uruguay Ambassador
Uruguay Ambassador Alberto Antonio Guani Amarilla announced that trade between India and Latin America is expected to double to USD 100 billion by 2030 from the current USD 50 billion. Speaking at the LAC FIRST conference in New Delhi, he highlighted the need to expand the India-Mercosur Preferential Trade Agreement from 450 to 3,000 products as a step toward a free trade agreement, with key sectors including minerals, agro-industries, and pharmaceuticals.
Business IMF Says India Remains a Key Driver of Global Economic Growth
The International Monetary Fund has retained India's growth projection at 6.5% for fiscal year 2026-27, citing robust domestic demand and US tariff reductions. Director Julie Kozack noted India's economy outperformed expectations in Q1, while the IMF sees positive developments from the Middle East ceasefire and Strait of Hormuz reopening.
Trade Global rating agencies have been unfair to India, says Piyush Goyal; discusses trade, economic growth with industry leaders in UK
Commerce and Industry Minister Piyush Goyal, on a UK visit, told industry leaders that global rating agencies Fitch, Moody's and S&P have been unfair to India, failing to recognize its growth and fundamentals. He called for ramping up exports to the UK and highlighted the upcoming India-UK Comprehensive Economic and Trade Agreement (CETA) effective July 15. Goyal also praised CareEdge for objective ratings and noted 22 country ratings were revised to align with CareEdge's findings.
Business Goldman Sachs and EY Raise India Growth Forecasts on Lower Crude Oil Prices
Goldman Sachs and EY revised India's growth forecasts upward on Friday, citing easing West Asia tensions and lower crude oil prices. Goldman Sachs raised its CY2026 real GDP growth forecast by 0.3 percentage points to 6.8%, while EY pegged 2026-27 growth at 6.6-6.8%. Both firms also lowered inflation and fiscal deficit estimates.
Business Andy Burnham's Devolution Plan: Can It Boost UK Economic Growth?
Andy Burnham, in his first major policy speech as an MP, outlined a radical devolution plan to rebalance power from Whitehall, aiming to boost UK economic growth. BBC Verify's analysis shows no clear historical growth impact from devolution in Scotland, Wales and Northern Ireland, but Burnham points to Greater Manchester as a successful case study.
Business IIP data decoded: Manufacturing, electricity lift India's industrial growth to 5.1% in May
India's Index of Industrial Production (IIP) rose 5.1% year-on-year in May 2026, driven by manufacturing and electricity output. The Ministry of Statistics also announced a methodology revision, replacing WPI with Output PPI as the deflator for the IIP series.
Trade Iran-US Interim Peace Deal May Support India's Growth But Inflation and Fiscal Risks Remain: RBI
The Reserve Bank of India, in its bi-annual Financial Stability Report, stated that the interim peace deal between Iran and the United States could support India's economic growth by normalising supply chains and easing geopolitical tensions. However, it warned that elevated oil and commodity prices, along with weaker global growth, could weigh on domestic expansion in 2026-27, while inflation and fiscal deficit pressures remain key concerns.
Business Tackle workplace sickness to unlock hidden growth, former John Lewis boss says
Former John Lewis chair Sir Charlie Mayfield says addressing long-term sickness absence could unlock hidden economic growth, with the issue costing the UK £212bn annually. Over 250 major employers have joined his Get Britain Working taskforce to track workplace health metrics.
Business US Tops Global Economy But Debt Burden Poses Biggest Risk, Deutsche Bank Warns
A Deutsche Bank Research Institute report warns that the US's growing debt burden—with federal deficits at 5-6% of GDP and debt exceeding 100% of GDP—poses the biggest risk to its long-term economic leadership, potentially eroding the dollar's reserve status. Despite structural strengths in capital markets, technology, and AI, the report highlights imminent fiscal challenges including exhaustion of Social Security trust fund by 2032.
Business India's Real GDP Growth Likely at 6.6% in FY27 Amid Energy Stress, Weaker Monsoon: S&P Report
S&P Global Ratings projects India's real GDP growth at 6.6% for FY27, driven by resilient global activity and AI investment but tempered by energy stress, a weak monsoon, and rising inflation. Consumer inflation is expected to hit 5.1%, with a policy rate hike anticipated in the second half of the fiscal year.
Trade Exports Rise 15% in Apr-Jun 14 Despite Global Uncertainties, Says Piyush Goyal
India's exports recorded 15% growth in April, May, and the first 14 days of June 2026, according to Commerce Minister Piyush Goyal, despite 50% US tariffs. May exports hit a six-month high of $45.2 billion with a trade deficit of $28.21 billion. Minister also urged a cleanliness campaign in his Mumbai North constituency.
Business Northeast Can Become India's Next Growth Engine via Organic Farming, Says Finance Minister
Union Finance Minister Nirmala Sitharaman stated that the Northeast region has the potential to become India's next growth engine by leveraging sustainable agriculture and premium organic produce. She inaugurated the Northeast's largest organic spice processing plant in Meghalaya, operated by Eastern Ri-Bhoi Organic Farmer Producer Company Ltd.
Business India Government Sees GDP Momentum Intact, No Extra Borrowing Needed Despite Middle East Crisis
The Indian government remains confident in its growth outlook despite rising fuel and fertiliser import costs from the Middle East crisis, with sources saying GDP momentum is intact and no additional borrowing is needed. The government targets a fiscal deficit of 4.3% of GDP for FY27 and plans to reassess macroeconomic conditions in July after Q1 growth data.
Trade TOI Business Desk Profile: How the Team Covers Global Economic News for Readers
The TOI Business Desk is a team of journalists dedicated to providing the latest business news from around the globe. Their coverage spans industries, markets, economic trends, and exclusive reports, helping readers navigate the complexities of the business world.
Business Why the US economy keeps defying the odds: corporate investment and energy resilience drive outperformance
The US economy continues to grow at a steady pace despite global shocks such as trade tariffs, immigration changes, and Middle East conflict. Corporate capital expenditure remains high at 13.9% of GDP, productivity has risen, and energy independence from fracking has reduced vulnerability to oil price spikes. Cultural attitudes toward risk-taking and structural differences with Europe further explain the divergence.
Business Raghuram Rajan Questions India's Growth Data, Cites Weak Investment and FDI
Former RBI Governor Raghuram Rajan has questioned India's official economic growth figures, noting a persistent disconnect between headline GDP numbers and business behavior such as weak corporate investment and falling foreign direct investment. His remarks come as India reported 7.7% growth in FY 2025-26, but Rajan argues that investment decisions by companies suggest growth may be less robust. He also warns of risks from the Middle East conflict and rising oil prices.
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.
Logistics Rail Traffic Surge Signals Industrial Growth
Rail traffic has increased significantly, indicating a robust industrial economy. Rail carload traffic rose by 2.5% and intermodal traffic by 8% year-over-year, according to FreightWaves.
US Inflation Hits Three-Year High at 4.2%
US inflation has surged to a three-year high of 4.2%, primarily due to rising energy costs. This increase raises the likelihood of the Federal Reserve raising interest rates.
Business India Secures $843 Billion in FDI Over a Decade
India attracted $843 billion in foreign direct investment between 2014-15 and 2025-26, driven by initiatives like Make in India and the PLI Scheme. The country recorded $94.53 billion in FDI in 2025-26 alone, with significant contributions from the US.
Trade India's Growth Sustained by Strong Fundamentals: World Bank
The World Bank emphasizes India's robust economic fundamentals and strategic partnerships as key to sustaining growth despite geopolitical challenges. The food processing sector is identified as a promising area for expansion.
Business Fitch Lowers India's Growth Forecast Amid Middle East Crisis
Fitch Ratings has revised India's GDP growth forecast for FY27 to 6.4%, down from 6.7%, citing the impact of Middle East turmoil on consumer spending. The agency also noted the potential for improved conditions once the energy shock eases.
Business India's GDP Surges 7.8% in Q4 FY26, Outperforming Expectations
India's economy demonstrated robust growth in the fourth quarter of FY26, with GDP expanding by 7.8%, surpassing expectations. The full-year growth reached 7.7%, driven by strong performances in trade, hotels, and transport sectors.
Business India's Economic Growth to Lead the World for Two Decades: Goyal
India is poised to remain the world's fastest-growing economy for the next two decades, according to Piyush Goyal. The country's strategic trade agreements and manufacturing capabilities are key drivers of this growth.
Business OECD Forecasts India's Growth Amid Global Economic Challenges
The OECD forecasts India to achieve a growth rate of 6.3% in FY27 and 6.4% in FY28, despite global economic challenges. Fiscal and monetary policies are expected to adapt to inflationary pressures and energy price shocks.
Business India's GDP Growth Slows Amid Global Challenges
India's GDP growth is projected to have slowed to 7.2% in Q1 2026, impacted by weaker external demand and industrial activity. Despite challenges, India remains the fastest-growing major economy, with services growth expected to stay robust.
Trade India Eyes Economic Resilience Amid Global Trade Challenges
Prime Minister Narendra Modi chaired a meeting with the Economic Advisory Council to discuss strategies for bolstering India's economic growth amid global uncertainties. Key discussions included trade reforms and measures to attract foreign investment.
Trade India Aims for $30 Billion Seafood Export by 2031
India's Commerce Minister Piyush Goyal announced a target to increase seafood exports to $30 billion by 2031, emphasizing value addition and quality. The strategy includes leveraging free trade agreements and reducing raw shrimp imports.
Business India's GDP Grows 7.7% in FY26; RBI Lowers FY27 Forecast
India's GDP expanded by 7.7% in FY26, driven by strong investment and sectoral growth. However, the RBI has revised its FY27 growth forecast down to 6.6%, citing global economic challenges.
Business India to Surpass China in Global GDP Share by 2060
India is expected to surpass China in global GDP share by 2060, according to a report by the World Inequality Lab. The report highlights demographic shifts and economic trends that will reshape the global economic landscape.
Business India's GDP Growth Hits 7.7% in FY26, Modi Credits Reforms
India's GDP growth reached 7.7% in FY26, reflecting economic resilience and successful reforms. Prime Minister Narendra Modi attributes this growth to the hard work of 140 crore Indians and ongoing economic reforms.
Business India Eyes 7% Growth by FY28 Amid Economic Challenges
India's Chief Economic Adviser, V Anantha Nageswaran, projects a return to 7% GDP growth by FY28, contingent on macroeconomic stability and improved external conditions. This optimistic outlook follows the Reserve Bank of India's revised forecast of 6.6% growth for FY27.
Trade Global Investors Eye India for Long-Term Growth, Says Goyal
Union Commerce Minister Piyush Goyal highlights India's appeal to global investors at the Citi India Conference 2026. With nine free trade agreements in recent years, India is poised for sustained economic growth.
Business Industrial Output Growth Slows Amid Sectoral Challenges
India's industrial output growth decelerated to 4.9% in April 2026, down from 5.7% a year earlier, due to a contraction in the mining sector. Despite this, manufacturing and electricity generation showed resilience.
Manufacturing Factory Output Surges 4.9% in April, Manufacturing Expands 6.2%
India's industrial production rose by 4.9% in April 2026, driven by a 6.2% expansion in manufacturing. The new IIP series with a base year of 2022-23 reflects a more comprehensive industrial activity measure.
Commodities Natural Rubber Prices Steady Amid 3.4% Production Growth
India's natural rubber production increased by 3.4% in FY26, reaching 9.05 lakh tonnes. Favorable weather and government incentives supported this growth, while domestic prices showed stability.
Trade India, Canada Forge New Trade and Investment Forum
India and Canada have launched the Canada-India Trade and Investment Forum to enhance bilateral economic relations. The forum aims to foster commercial partnerships and expand cooperation in key sectors.