India Defies Global Slowdown
7.8% growth achieved in Q4 FY26 despite global risks and inflation surge.
Story timeline17 updates
Solar Industries' defence order book reaches ₹18,000 crore.
India's semiconductor market to reach $155 billion by CY31.
India's semiconductor market is projected to reach $155 billion by CY31.
India's electronics exports surged 11-fold to Rs 4.24 lakh crore in FY2025-26.
India's growth is expected to slow to 6.6% in FY27, according to Fitch Group company BMI.
HSBC estimates $25 billion of potential inflows if underweight global emerging-market funds return to a neutral position on India.
HSBC estimates $25 billion of inflows if underweight global emerging-market funds move to a neutral position on India.
HSBC estimates $25 billion of inflows if underweight global emerging-market funds move to a neutral position on India.
HSBC estimates $25 billion of inflows if underweight global emerging-market funds move to a neutral position on India.
HSBC estimates $25 billion of inflows if underweight funds move to neutral position.
HSBC estimates $25 billion of potential inflows into Indian equities if underweight global emerging-market funds return to a neutral position.
HSBC estimates $25 billion of inflows if underweight funds return to neutral position.
CEA Nageswaran cautions that the next 20 years will be more challenging for India's economy, despite current resilience and strengthened supply-side potential.
Foreign investors purchased $3.6 billion of Indian equities since mid-June.
HSBC estimates $25 billion in potential foreign inflows if global funds move to a neutral position on India after AI-rotation outflows.
HSBC estimates $25 billion in potential foreign inflows if global funds move to a neutral position on India after AI-rotation outflows.
Story published. 7.8% growth achieved in Q4 FY26 despite global risks and inflation surge.
India’s financial markets are expected to sustain growth, supported by resilient domestic demand and robust macroeconomic fundamentals, even as global risks remain elevated. The Reserve Bank of India (RBI) governor Sanjay Malhora termed the country’s macroeconomic fundamentals 'very strong', citing healthy balance sheets of banks and corporates, ongoing reforms, and fiscal consolidation.
The finance ministry’s July Monthly Economic Review highlighted that India’s economic activity continued to expand in the first quarter of FY27, despite heightened global uncertainty. Growth in the January-March period of FY26 reached 7.8%, though industrial activity showed mixed signals, with the Index of Core Industries rising 5.0% year-on-year in June, led by iron ore, electricity, cement, and steel. However, retail inflation has breached the RBI’s target due to rising food prices.
Global headwinds persist, with the International Monetary Fund projecting global growth to slow from 3.2% in 2025 to 3.0% in 2026 before recovering to 3.4% in 2027. Geopolitical tensions in West Asia and volatile commodity prices have added to uncertainty, though domestic demand and policy responses are expected to cushion the impact. Meanwhile, Indian equities faced pressure in 2025-26, with the Nifty 50 and broader indices declining around 14% in US dollar terms.
A parliamentary panel also flagged concerns over the 18% GST on insurance products, noting its adverse effect on affordability and penetration.
