Canada Opens Gordie Howe Bridge Without U.S. Officials as Trump Tariff Tensions Persist 
Global Leaders Push Back as Trump Imposes New Forced Labor Tariffs 
BOJ Expected to Hold Rates Steady While Signaling More Hikes Ahead 
India to Continue U.S. Trade Talks After Trump Imposes 10% Import Tariff 
Trump Says No Decision on Major Iran Strikes as U.S.-Tehran Talks Intensify 
Dollar Holds One-Month High as Fed Rate Hike Bets Grow, Yen Remains Under Pressure 
US Dollar Posts Best Weekly Gain in Over a Month as Middle East Tensions Boost Safe-Haven Demand 
European Stocks Flat as Oil Tops $100, Trump Tariffs Fuel Inflation Fears 
Oil Prices Extend Slide as U.S.-Iran Talks Ease Middle East Supply Fears 
Eurozone Bond Yields Fall as Oil Slump Eases Inflation Fears Ahead of Central Bank Meetings 
Europe Economy Faces Recession Risk as Energy Costs and Weak Manufacturing Weigh on Growth 
South Korean Chip Stocks Plunge as AI Spending Concerns and China Competition Shake Market 
Gold Price Holds Above $4,000 as Fed Rate Hike Bets Rise on Oil-Driven Inflation 
Asian Stocks Sink as AI Spending Fears and China Chip Advances Hit Tech Shares 
Gold Prices Rise as Weak Dollar, Fed Rate Decision in Focus 
Houthi Attacks on Saudi Oil Sites Raise Fears of Wider Middle East Conflict Despite U.S. Strike Pause 
US Stock Futures Rally as Oil Prices Drop Ahead of Fed Meeting and Big Tech Earnings 
India’s economic growth is expected to slow significantly in the current fiscal year as weak private investment and rising oil prices linked to the Iran conflict weigh on domestic demand, according to a Reuters poll of economists.
The survey, conducted from July 21 to July 27 among 42 economists, projects India’s gross domestic product (GDP) will expand 6.6% in the fiscal year ending March 2027, down from 7.7% growth in FY2025/26. Growth is expected to recover only slightly to 6.8% in FY2027/28.
Economists said Asia’s third-largest economy remains heavily dependent on government spending, while concerns persist that official GDP data may overstate the strength of underlying economic activity. Similar challenges are affecting several Asian economies, including China, Thailand, Indonesia, and the Philippines, where weak domestic demand and elevated energy prices continue to pressure growth.
Kunal Kundu, India economist at Societe Generale, said headline GDP figures likely exaggerate the economy’s actual momentum. Although investment and inventory accumulation have supported recent growth, he noted that statistical distortions may be making overall economic performance appear stronger than it really is.
Official figures showed private investment rose 10.8% in the January-March quarter, marking its fastest pace under the revised GDP methodology. However, economists remain skeptical that businesses will sustain capital spending despite healthy corporate balance sheets.
Morgan Stanley chief India economist Upasana Chachra said companies are delaying major investment decisions due to uncertainty over consumer demand and the global economic outlook. Slower trade growth and weaker domestic consumption could further reduce incentives for capacity expansion, particularly for export-oriented industries.
Meanwhile, higher global crude oil prices following the U.S.-Israeli conflict with Iran have increased inflation risks for India, which imports roughly 90% of its crude oil. Rising fuel and transportation costs have complicated the Reserve Bank of India’s policy outlook.
Most economists expect the RBI to keep interest rates unchanged at its August meeting while monitoring inflation risks. Analysts at BofA believe the central bank will maintain a cautious stance, emphasizing price stability while awaiting clearer signs on economic growth.
