Retail inflation slips to multi-year low of 2.1% in June
'There is a decline of 72 basis points in headline inflation of June 2025 in comparison to May 2025. It is the lowest year-on-year inflation after January 2019,' it said. The previous low of 1.97 per cent was recorded in January 2019. The NSO said the significant decline in headline inflation and food inflation in June 2025 is mainly attributed to favourable base effect and decline in inflation of vegetables, pulses and products, meat and fish, cereals and products, sugar and confectionery, milk and products and spices.
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Business Standard
31 minutes ago
- Business Standard
Economy to grow at 6.5% in FY26 despite global uncertainties: EAC-PM Chair
The Indian economy is expected to grow at 6.5 per cent in the current financial year, despite geo-political tensions and trade policy uncertainties, Economic Advisory Council to the Prime Minister (EAC-PM) Chairman S Mahendra Dev said on Tuesday. In an interview with PTI, Dev further said that domestic growth will be driven by low inflation, resulting from good monsoon and benign interest rate regime, triggered by three back-to-back rate cuts by the Reserve Bank of India. "There are significant global headwinds like the twin shocks of geo-political tensions and trade policy uncertainties. "However, the Indian economy is resilient and continues to be the fastest growing country among large economies," the eminent economist said. According to Dev, high-frequency indicators for the first two months of 2025-26 indicate resilient performance of the domestic economy. "A 6.5 per cent of GDP growth for FY26 is feasible despite global uncertainties. India's medium-term growth prospects seem to be robust with sound fiscal management," he said. Dev also emphasised that rising government capital expenditure will have positive impact on growth with a healthy expansion in private consumption. The International Monetary Fund (IMF) and the World Bank have slashed India's growth projections for 2025-26 to 6.2 per cent and 6.3 per cent, respectively, citing uncertain global environment and high trade tensions. The Indian economy is estimated to have grown at 6.5 per cent in the previous fiscal year. As per the Reserve Bank of India's projections, the country's economy will expand at the same rate in the current fiscal year as well. Dev said there are many domestic tailwinds such as low inflation, rate cuts, and cash reserve ratio (CRR) cut by the RBI, expected good monsoon, measures in the last Budget like rising capital expenditure, tax reduction, etc. "These tailwinds may raise both rural and urban demand by raising both investment, consumption and some push to exports," he said, adding that on the supply side, agriculture and services are doing well and the growth of manufacturing will improve over the years. Responding to a question on inflation, Dev said with a good monsoon, food inflation should be under control this year. "Projections show continued moderation in the prices of many commodities, including crude oil. "Of course, we have to be watchful about the geopolitical uncertainties and tariff-related tensions, which can raise commodity prices," he said. CPI headline inflation was 2.10 per cent in June 2025 and it is the lowest year-on-year inflation after January 2019. Crude oil prices are currently under control. Food inflation in June 2025 was -1.06 per cent. Assuming a normal monsoon, RBI projected inflation at 3.7 per cent for FY26. Responding to a question on surge in net outward foreign direct investment (FDI), Dev pointed out that the World Investment report 2025 shows that global FDI inflows grew a marginal 3.7 per cent in gross FDI to USD 1,509 billion in 2024. "This is much lower than the global FDI inflows that had peaked nine years ago at USD 2,219 billion in 2015," he said. In other words, Dev said global FDI itself is growing slowly. Noting that India's FDI inflows have increased 14 per cent in FY25 -- although there was a moderation in net FDI -- he said it is known that there was net outward FDI and a rise in repatriation. "Exits and repatriation are part of the process and indicates a sign of a mature market. Unless you enable exit, the country can't attract investment," the EAC-PM chairman said. He pointed out that it may be noted that non-resident deposits and external commercial borrowings (ECBs) recorded higher net inflows in FY 25 compared to FY24. "Higher gross FDI also indicates that India continues to remain an attractive investment destination," Dev said. Referring to the government's push for public capital expenditure, Dev said increasing government capex will also have impact on private sector investment as studies have shown that creation of national highways and rural roads have increased businesses in rural and urban areas. "In other words, government capex will have multiplier effects. There are some green shoots on private capex," he asserted. Pointing out that many state governments are also attracting domestic and foreign private investment, he said the corporate sector and banks are earning more profits now and their balance sheets are in good shape. "So, there is no problem of capital availability. 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Indian Express
32 minutes ago
- Indian Express
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Business Standard
36 minutes ago
- Business Standard
Indices trade with decent gains; pharma shares rally for 3rd day
The headline equity benchmarks traded with modest gains in mid-afternoon trade, extending their upward momentum on the back of sustained buying interest. Investor focus remained on domestic macroeconomic indicators, global tariff-related cues, and corporate earnings announcements. The Nifty traded above the 25,150 mark. Pharma shares extending gains for third day in a row. At 14:26 IST, the barometer index, the S&P BSE Sensex advanced 301.97 points or 0.37% to 82,556.01. The Nifty 50 index added 100.45 points or 0.40% to 25,184.35. The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.60% and the S&P BSE Small-Cap index added 0.99%. The market breadth was strong. On the BSE, 2,570 shares rose and 1,392 shares fell. A total of 177 shares were unchanged. Economy: Indias retail inflation, measured by the Consumer Price Index (CPI), cooled to a multi-year low of 2.10% in June 2025, thanks to a sharp dip in food prices. The data, released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday, 14 July 2025, marks the lowest year-on-year inflation rate since January 2019. For comparison, CPI inflation stood at 2.82% in May 2025 and 5.08% in June 2024. Buzzing Index: The Nifty Pharma index jumped 0.95% to 22,624.25. The index rallied 2.47% in three consecutive trading sessions. Natco Pharma (up 3.04%), Biocon (up 2.84%), Sun Pharmaceutical Industries (up 2.77%), Lupin (up 1.60%), Alkem Laboratories (up 1.45%), Torrent Pharmaceuticals (up 1.15%), Granules India (up 1.14%), Aurobindo Pharma (up 0.95%), Ipca Laboratories (up 0.91%) and Gland Pharma (up 0.68%) advanced. On the other hand, Mankind Pharma (down 1.78%), Divis Laboratories (down 0.32%) and Laurus Labs (down 0.08%) edged lower. Numbers to Track: The yield on India's 10-year benchmark federal paper rose 0.06% to 6.315 from the previous close of 6.311. In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.8050 compared with its close of 85.9200 during the previous trading session. MCX Gold futures for 5 August 2025 settlement rose 0.16% to Rs 97,931. The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.11% to 97.66. The United States 10-year bond yield fell 0.25% to 4.418. In the commodities market, Brent crude for September 2025 settlement declined 46 cents or 0.66% to $68.75 a barrel. Stocks in Spotlight: Swaraj Engines surged 9.80% after the company reported a 15.7% increase in net profit to Rs 49.97 crore on a 15.8% increase in net operating revenue to Rs 484.10 crore in Q1 FY26 as compared with Q1 FY25.
