Economy News — GDP, Inflation, Policy
Keep up with the macroeconomic forces that shape market direction. This section covers GDP growth, inflation data, RBI rate decisions, government fiscal policy, trade balance, and other indicators that drive investor sentiment and corporate earnings. Understanding the economic backdrop is essential for making sense of market moves — whether it is a rally driven by rate cut expectations or a sell-off triggered by fiscal deficit concerns. The news here connects macro trends to what they mean for your portfolio.
What will happen to economy if India-US FTA doesn't happen? RBI Governor reveals
"The impact depends on to what extent tariffs are going to be applied. So, it's premature to answer. But obviously it will have some negative impact," Malhotra said during the post-monetary policy press conference in response to a query on the impact on the economy if the trade deal with the US fails to materialise. However, India has concluded or implemented a series of trade agreements in recent months, which could help diversify its export markets.
US Fed minutes signal another rate hike by year-end as inflation stays high
According to the latest minutes from the US Federal Reserve, officials hint at a possible interest rate rise by year's end in response to ongoing inflation challenges. With inflation reaching a high of 7.2% in June 2022, fluctuations have continued amid worries over geopolitical events and escalating energy costs. The Fed faces the complex task of controlling inflation while ensuring stable employment within the economy.
US Fed minutes show members backing another rate hike before year-end
According to the latest minutes from the US Federal Reserve, officials hint at a possible interest rate rise by year's end in response to ongoing inflation challenges. With inflation reaching a high of 7.2% in June 2022, fluctuations have continued amid worries over geopolitical events and escalating energy costs. The Fed faces the complex task of controlling inflation while ensuring stable employment within the economy.
Lakhpati Didi scheme boosts household income: IIM Study
The Lakhpati Didi initiative, launched in 2023, aims to enhance women's income and savings in India. Recent studies indicate that household income has increased by 61% since the program's inception. Notably, the number of women-led enterprises has surged by 48% within a year.
Growth hinges on local reforms, not protectionism: Indermit Gill
The country has strong domestic consumption, relatively low private-sector debt and favourable demographics, along with rapidly expanding digital and physical infrastructure. But the growth opportunity is conditional: The transition should be driven by domestic reforms rather than protectionism, Gill, a former chief economist and senior vice president for development economics at the World Bank Group, said in an interview with ET in New Delhi.
Punjab National Bank, Indian Bank raise lending rates after RBI repo rate hike — Here's what this means for customers…
After the RBI raised its repo rate to 5.50%, Punjab National Bank, Indian Bank, Bank of Baroda, Bank of India, Indian Overseas Bank and Tamilnad Mercantile Bank increased their lending rates. Here's what this means for customers…
India, UK seek deeper investment ties
The agreement was part of the joint statement adopted after the fourth UK-India Financial Markets Dialogue, held in London on September 29 , the finance ministry said.
US bond selloff resumes as 10- and 30-year yields hit fresh 24-year highs
US Treasuries are facing significant selling pressure as yields hit new highs, fueled by ongoing inflation concerns. Higher oil prices have exacerbated worries about sustained inflation in the market. The 10-year and 30-year bond yields have soared to their highest levels in 24 years. Additionally, rising corporate borrowing is vying for investor capital, contributing to supply constraints. Amid these dynamics, the Treasury plans to auction $39 billion in 10-year notes.
US bonds selloff resumes as 10-year, 30-yields hit new 24-year high
US Treasuries are facing significant selling pressure as yields hit new highs, fueled by ongoing inflation concerns. Higher oil prices have exacerbated worries about sustained inflation in the market. The 10-year and 30-year bond yields have soared to their highest levels in 24 years. Additionally, rising corporate borrowing is vying for investor capital, contributing to supply constraints. Amid these dynamics, the Treasury plans to auction $39 billion in 10-year notes.
AI's 'Triple Whammy': Energy, Tech Push, Borrowing — IMF Flags Global Debt Crisis Testing Central Banks
IMF Managing Director Kristalina Georgieva says AI could boost global growth but is also adding inflation and financial stability risks.
India's GST Revolution: How India’s biggest indirect tax reform changed its economy and its way of doing business
India's GST Revolution: GST has transformed India's indirect taxation system, eliminating many previous levies to streamline compliance and taxation. Following its introduction in 2017, businesses adjusted to new frameworks and updated regulations. Key changes included the phased introduction of e-invoicing and the removal of border checkposts enhancing logistics.
RBI To Conduct 29-Day Variable Rate Reverse Repo Rate Auction For Rs 2 Lakh On Oct 8
Currently, the liquidity in the banking system is estimated to be in surplus of around Rs 4.99 lakh crore as on Oct. 7.
RBI hikes repo rate by 25bps: What it means and how it impacts you | All FAQs answered
The RBI's 25-basis-point repo rate hike on 7 October is aimed at curbing inflation. This increase could raise borrowing costs for loans, affecting monthly repayments, while potential adjustments to deposit rates may also occur.
What happens to FD interest rates after RBI MPC hikes interest rates? Calculation explains basis 25 bps
The Reserve Bank of India raised the repo rate by 25 basis points to 5.50%, marking its first increase since February 2023. Here's a look at whether this could impact fixed deposit rates and what any transmission would mean for your funds… 
Market Trading Guide: Kotak Mahindra Bank among 5 stock recommendations for Thursday
Analysts recommend five stocks—Black Box, Deep Industries, MRPL, Leela Palaces and Kotak Mahindra Bank—for medium-term gains after the RBI shifted to calibrated tightening. Technical setups show breakouts, bullish momentum and strong support, while investors await September-quarter earnings and management commentary.
India-EU FTA to drive German investment into India: Indo-German Chamber chief
India and the EU are set to strengthen trade relations and increase investments from German companies. The Indo-German Engineering Summit highlighted opportunities in advanced manufacturing and sustainability. Jan Noether emphasized the need for German companies to invest in local supply chains in India. Collaborations in technology sectors could enhance India's manufacturing capabilities and create engineering jobs. Greater engagement between Indian and German firms may foster long-term busines
RBI's Next Rate Hike Will Be Of 0.50%: SBI Economists
SBI said that global conditions are likely to turn more volatile soon, and getting the repo rate to 6 per cent from the present 5.50 per cent will be the best option.
UK 30-year gilt yields hit 28-year high in global selloff
The British 30-year bond yields have skyrocketed to their highest level since January 1998 amid a global bond market decline. This surge is primarily driven by ongoing inflation and substantial government borrowing, which are raising apprehensions among bond investors globally. As Finance Minister John Healey prepares for his budget announcement on October 28, 2023, analysts anticipate a £15 billion increase in public borrowing in the coming fiscal years.
India's green economy can support 1.3 crore jobs by 2035 but challenges remain: Report
The report says to build a green workforce at scale, India needs to revise the National Policy for Skill Development and Entrepreneurship, 2015, to integrate green jobs as a core focus and establish a National Green Jobs and Skilling Mission as the implementation mechanism.
India has a 1% GDP opportunity. It’s hiding in plain sight
India could unlock a 1% GDP opportunity by reducing productivity losses from equipment breakdowns, unplanned downtime and inefficient assets, industry leaders said at MRAM Expo 2026. With 88% of Indian industrial businesses reporting monthly unplanned outages, experts are pushing predictive, data-driven maintenance to improve output and extend asset life.
RBI Removes Paytm Payments Bank From List Of Scheduled Banks
The RBI has formally removed Paytm Payments Bank from the list of scheduled banks after cancelling its banking licence over regulatory non-compliance.
'Calibrated' Turn Vs Off-Cycle Shocker: How The New RBI Hike Cycle Compares To 2022
After a 43-month pause, the RBI has resumed rate hikes to tame inflation—but economists warn this new tightening cycle carries stagflationary whispers.
Bank Of India Raises Repo-Linked Lending Rate After RBI Hike — What You Should Know
Bank of India raised repo based lending rate by 25 basis points to 5.50% and effective repo based lending rate from 8.10% to 8.35%, while mark up rate remains the same at 2.85%.
Four Astronauts, One Dragon, 237 Days Later: Crew-12 Prepares To Head Home
NASA’s SpaceX Crew-12, comprising four astronauts, is set to undock from the ISS on Oct. 7 after 237 days in orbit and splash down off California on Oct. 8 following a 26-hour journey home.
RBI removes Paytm Payments Bank from list of scheduled banks after cancellation of banking licence — What we know
The Reserve Bank of India has removed Paytm Payments Bank from its list of recognised scheduled banks due to non-compliance with regulations. The bank's licence, cancelled in April 2023, was deemed detrimental to depositors' interests.
Margin boost: Jefferies picks 3 bank stocks to gain the most from RBI rate hikes
Jefferies expects RBI’s 25-basis-point rate hike and calibrated tightening stance to support bank earnings, particularly ICICI Bank, SBI and Axis Bank. Faster loan repricing could drive margin expansion, while smaller private banks, NBFCs and life insurers may face greater pressure.
India-bound sunflower oil cargoes face cancellation, delays as war disrupts Russian shipments
The Russia-Ukraine conflict has also delayed about 60,000 tons of sunflower oil bound for India, prompting Indian buyers to step up palm oil purchases ahead of the festival season, trade sources said.
RBI rate hike dampens consumption stocks’ festive cheer
Unlike past rate hikes, consumption-focused stocks failed to recover on policy day, raising concerns that higher borrowing costs could weigh on festive-season demand and consumption
Govt tightens sugar inventory norms to keep prices under check ahead of festive season
The government has notified a reduction in the permissible stock of sugar that dealers can hold to 1,000 quintals. The revised ceiling will apply from October 15 to November 30, 2026, as part of measures aimed at ensuring adequate availability of the sweetener during the festival period.
FMCG Q2FY27 preview: 6 stocks HDFC Sec likes; Honasa, Nestlé, Emami, Bikaji, Britannia, Godrej Consumer - check targets
Indian FMCG companies face a mixed Q2FY27 earnings season, with expected revenue growth supported by a softer base and selective price hikes, but persistent raw material inflation may pressure margins. HSIE Research maintains an underweight stance due to weak earnings visibility.
Home Loan vs FD: How 25-Bps Repo-Rate Hike Affects Rs 50 Lakh
The RBI has raised the repo rate by 25 basis points to 5.50%. Here's how the rate hike could affect a Rs 50 lakh floating-rate home loan and a fresh Rs 50 lakh fixed deposit.
India bonds tumble after RBI's first rate hike in nearly four years
In a bid to combat inflation, the Reserve Bank of India has increased the key interest rate to 5.5%. This decision has led to a notable dip in Indian government bonds in the market. Factors such as climbing global oil prices are further complicating the economic landscape. While the 10-year bond yield remains high, forecasts suggest that interest rates may continue to rise this fiscal year.
Indian Export Body Urges RBI To Extend Export Credit Tenure To 450 Days Amid Rate Hike Concerns
The FIEO President said that higher interest costs in such circumstances can adversely affect the competitiveness of Indian exporters, especially those operating on thin margins.
RBI still assessing revolving credit norms: Sanjay Malhotra
Reserve Bank of India governor Sanjay Malhotra has indicated that regulations on revolving credit by non-banking finance companies are under review. The RBI issued draft norms limiting NBFCs to term loans without revolving credit options. Malhotra said that systemic risks linked to these changes will be thoroughly evaluated before reaching a decision.
Individuals exempt from reporting under new FEMA trade rules, RBI says
Individuals undertaking personal transactions will not have to comply with new foreign exchange trade regulations imposed. The Reserve Bank of India aims to ease compliance burdens related to reporting obligations for personal contracts. RBI Governor Sanjay Malhotra confirmed that routine payments for services and subscriptions are exempt from reporting. Additionally, smaller export transactions of up to ₹10 lakh may rely on self-declarations.
Market wrap: Kotak Bank, Bharti Airtel, Titan Company, Adani Ent top gainers and losers on Nifty and Sensex on Wednesday
Indian equities ended lower on Wednesday after the RBI raised the repo rate by 25 basis points to 5.5% and shifted its stance to calibrated tightening. The Nifty and Sensex fell 0.76% and 0.59%, respectively, while Titan Company, Adani Enterprises and Hindalco led losses. Kotak Bank and Bharti Airtel topped gainers.
Nifty 50 and RBI MPC rate hikes: Does a rising interest rate always trigger a market correction? What history suggests
The RBI MPC raised the repo rate by 25 basis points to 5.5%, marking its first hike in four years amid inflation concerns. While the Sensex and Nifty fell post-announcement, historical data shows market responses to rate hikes have varied based on economic conditions.
From Repo Rate Hike, To Growth Outlook: RBI MPC Meeting Outcome Highlights
RBI MPC Meeting Live: Follow live updates on the repo rate decision, Governor Sanjay Malhotra's speech, key announcements and market reaction.
Credit growth may ease after rate hike but remain strong: RBI
The Reserve Bank of India projects a moderation in bank credit growth from the current 19% level. This expected slowdown results from a recent repo rate increase implemented to manage rising inflation. Despite the decrease, it is anticipated that growth will remain strong enough to support overall economic activity. Lending to sectors like services and industry shows significant year-on-year growth, reflecting resilient demand.
Car Loan EMI Calculator: What Changes After A RBI Repo Rate Hike? Check Your New EMI
For borrowers, the rate hike could make retail loans, including car and home loans, more expensive.
RBI signals more rate hikes ahead: Could 7.25% yield level become a near-term market reference point?
Global yields have risen sharply as the rate-hike cycle has started. Moreover, there are concerns over rising fiscal deficit which is also making investors sell bonds aggressively, driving yields up.
RBI MPC 25 bps rate hike: Banks stocks vs NBFCs - Why Jefferies India picked SBI, ICICI Bank, Axis Bank shares
Jefferies India believes RBI's Repo Rate hike may work as a catalyst for the Indian banks
Stock market prediction for today: Sensex, Nifty outlook for Thursday | Kospi, Taiwan cues to watch | 8 Oct 2026
The Indian stock market experienced volatility on Wednesday as stocks fell after the RBI raised interest rates by 25 basis points. Financials and autos led declines, resulting in the Nifty 50 and Sensex closing lower, amid ongoing inflation and economic pressures.
Stock market prediction for tomorrow: Sensex, Nifty outlook for Thursday | Kospi, Taiwan cues to watch | 8 Oct 2026
The Indian stock market experienced volatility on Wednesday as stocks fell after the RBI raised interest rates by 25 basis points. Financials and autos led declines, resulting in the Nifty 50 and Sensex closing lower, amid ongoing inflation and economic pressures.
RBI Bites The Bullet: How High Can Repo Rate Go After Hawkish Pivot? Experts Decode
The MPC unanimously backed the rate hike and indicated that future policy action would either be a further hike or a pause, effectively taking rate cuts off the table in the near term. The shift has strengthened expectations that the RBI has entered a new rate-hike cycle.
Investors Lose Rs 3.73 Lakh Crore As Sensex, Nifty Digests RBI's Hawkish Stance
Nifty closed 0.76% lower at 22,603.05, while BSE Sensex closed 0.59% lower at 72,638.70.
Global Market: UK Gilt yields rise as oil, US Treasury yields weigh on bonds
British 10-year gilt yields jumped 6 basis points to 5.44%, nearing a 19-year high, as rising oil prices and US Treasury yields fueled inflation concerns. Investors also focused on Britain’s upcoming October 28 budget and fiscal outlook. Potentially higher borrowing needs and weak global bond markets added pressure to government debt.
Global Market: European shares fall as rising yields, oil lift risk concerns
European shares fell after three sessions of gains as rising oil prices and global bond yields weighed on sentiment, while concerns over France’s fiscal position added to pressure on markets.
Why Warren Buffett considers interest rates key to stock valuations
RBI’s first repo rate hike in nearly four years highlights why interest rates matter for stock valuations, echoing Warren Buffett’s long-held view that higher rates can weigh on asset prices.
'A Small Fee Won't Impact Volumes': RBI Governor On Upcoming UPI Merchant Charges
From Oct. 15 onwards, a Merchant Discount Rate (MDR) of 0.4% will apply to select person-to-merchant UPI transactions exceeding Rs 2,000.
Frequently Asked Questions
How does RBI monetary policy affect the stock market?
When the RBI cuts interest rates, borrowing becomes cheaper for companies and consumers, which tends to boost earnings growth and makes equities more attractive relative to fixed-income investments — so stock prices generally rise. Rate hikes have the opposite effect. But the market often reacts more to the RBI's commentary and forward guidance than the actual rate decision, because investors are pricing in what comes next, not what happened today.
What economic indicators matter most for investors?
GDP growth rate gives you the big picture on economic expansion. CPI inflation tells you whether the RBI is likely to tighten or ease policy. The Purchasing Managers Index (PMI) is a leading indicator of manufacturing and services activity. Industrial production (IIP), GST collections, and auto sales data give real-time signals on economic momentum. Trade deficit data and foreign exchange reserves indicate external sector health.
How does the Union Budget impact the markets?
The Budget affects markets through changes in tax rates (corporate and personal), capital expenditure allocations, fiscal deficit targets, and sector-specific policies like production-linked incentives. Markets can react sharply on Budget day based on whether the government prioritises growth, fiscal discipline, or populist spending. Infrastructure, defence, and consumption sectors are often the most sensitive to Budget announcements.