Latest from Times of Oman
Times of Oman
7 hours ago
- Business
- Times of Oman
India records $13.5 billion current account surplus in Q4-FY25
Mumbai: India's current account recorded a surplus of $13.5 billion (or 1.3 per cent of GDP) in the January-March quarter of 2024-25 as compared with $4.6 billion (or 0.5 per cent of GDP) in the same quarter of 2023-24, RBI data showed Friday. Reportedly, the country's current account posted a surplus for the first time in four quarters. In the October-December quarter of 2024-25, the current account was in a deficit of USD 11.3 billion (1.1 per cent of GDP). Merchandise trade deficit, at USD 59.5 billion in Q4 2024-25, was higher than USD 52.0 billion in Q4 2023-24. However, it moderated from USD 79.3 billion in Q3 2024-25. Net services receipts increased to USD 53.3 billion in Q4 2024-25 from USD 42.7 billion a year ago. Services exports have risen on a year-on-year basis in major categories such as business services and computer services. Net outgo on the primary income account, primarily reflecting payments of investment income, moderated to USD 11.9 billion in Q4 2024-25 from USD 14.8 billion in Q4 2023-24. Personal transfer receipts, mainly representing remittances by Indians employed overseas, rose to USD 33.9 billion in Q4 2024-25 from USD 31.3 billion in Q4 2023-24. In the financial account, foreign direct investment (FDI) recorded a net inflow of USD 0.4 billion in Q4 2024-25 as compared to an inflow of USD 2.3 billion in the corresponding period of 2023-24. Foreign portfolio investment (FPI) recorded a net outflow of USD 5.9 billion in Q4 2024-25 as against a net inflow of USD 11.4 billion in Q4 2023-24. In the entire year 2024-25, India's current account deficit, at USD 23.3 billion (0.6 per cent of GDP) was lower than USD 26.0 billion (0.7 per cent of GDP) during 2023- 24, primarily due to "higher net invisibles receipts." Net invisibles receipts were higher during 2024-25 than a year ago on account of services and personal transfers, RBI said. Aditi Nayar, Chief Economist and Head - Research and Outreach, ICRA Limited, said, "While the current account balance expectedly reported a seasonal surplus in Q4 FY2025, the size of the same overshot our expectations, amid a surprise dip in primary income outflows in the quarter. This led to the unexpected narrowing in the CAD to 0.6 per cent of GDP in FY2025 from 0.7 per cent in FY2024." "Amid expectations of a widening in the merchandise trade deficit as well as a moderation in the services trade surplus in Q1 FY2026 vis-a-vis Q4 FY2025, we expect the current account to revert to a deficit in the ongoing quarter, printing at 1.3 per cent of GDP. We foresee India's current account deficit to average 1 per cent of GDP in FY2026, assuming an average crude oil price of USD 70/barrel for the fiscal, which is eminently manageable in spite of the prevailing global uncertainties," added Nayar. In another news, the Reserve Bank of India, in consultation with the State Governments/Union Territories (UTs), announced today that the quantum of total market borrowings by the State Governments/UTs for the quarter July - September 2025, is pegged to be Rs 2.86 lakh crore.
Times of Oman
7 hours ago
- Business
- Times of Oman
India looking at option of buying more S-400 air defence systems from Russia
New Delhi: With the S-400 air defence missile systems performing very well during Operation Sindoor, India is considering the option of buying two more squadrons of S-400 long range surface-to-air missile systems from Russia, defence sources told ANI. The sources said more systems of the S-400 are being considered due to security threats in view of the recent hostilities and the time to be taken in the development and deployment of the indigenous LRSAM programme, codenamed Project Kusha by the Defence Research and Development Organisation, with Solar Defence and Aerospace Limited and Bharat Dynamics Limited as its development and production partners. The Indian side would prefer to get S-500 air defence system which has more range than the S-400 but it would require a clearance from the top Russian leadership for its sale, they said. The S-400 performed exceptionally in Operation Sindoor taking out multiple Pakistan Air Force fighter and airborne early warning aircraft. It also managed to create a record of sorts by successfully hitting an aircraft at a range of 300 plus kilometres. India is also awaiting the delivery of two more squadrons of the five S-400 squadrons that it had ordered in a 2018 deal. The first three squadrons have already been received and operationally deployed. Just before the delivery of the fourth squadron, war broke out between Russia and Ukraine. The systems meant for India were probably used in the war. The Russian side has now assured the delivery of the remaining two systems in the next financial year. Indian defence teams have also raised the issue with the Russian side and they have given assurances to not extend the schedule further.
Times of Oman
7 hours ago
- Business
- Times of Oman
Positive trajectory in Indian economy continues in 2025-26, all indicators indicate resilience: FinMin
New Delhi: The positive trajectory in the Indian economy appears to be continuing in 2025-26, with initial high-frequency indicators suggesting that economic activity has remained resilient, according to the Ministry of Finance's monthly report, released on Friday. High-frequency indicators such as e-way bill generation, fuel consumption, and PMI indices point to continued resilience. "Rural demand has strengthened further, supported by a healthy rabi harvest and a positive monsoon outlook," the monthly economic review of the finance ministry said. "Urban consumption is being supported by increased leisure and business travel, as seen in the rise of air passenger traffic and hotel occupancy." However, the report noted that there are signs of softening in areas like construction inputs and vehicle sales. Retail and food price inflation registered a sustained and broad-based decline in May 2025, driven by robust agricultural production and effective government interventions. Continuing its downward trend, consumer price inflation in India hit an over six-year low in May, in respite to common people. According to the statistics ministry, the year-on-year inflation rate based on Consumer Price Index (CPI) for the month of May was 2.82 per cent (provisional). It is the lowest year-on-year inflation since February 2019. The inflation rate is within the Reserve Bank of India's (RBI) manageable range of 2-6 per cent. Retail inflation last breached the Reserve Bank of India's 6 per cent upper tolerance level in October 2024. Since then, it has been in the 2-6 per cent range, which the RBI considers manageable. Coming back to the finance ministry report, India's economic momentum continues to grow, reflecting the country's ability to navigate complex global challenges while sustaining domestic growth drivers. In 2024-25, real GDP grew by 6.5 per cent, aligning with the Second Advance Estimates. "This growth came amid a challenging global environment marked by geopolitical tensions and trade uncertainties. Robust domestic demand, particularly a rebound in rural consumption, steady investment activity, and a positive shift in net exports, underpinned the economy's resilience. The services sector continued to be the main driver of growth on the supply side. Industrial output also expanded, with strong growth in construction and a stable performance in manufacturing. The agriculture sector rebounded, bolstered by favourable monsoon conditions and record food grain production," the report read. On the external front, India's total exports (merchandise and services) recorded a year-on-year growth rate of 2.8 per cent in May 2025, reflecting the resilience of exports amid tariff uncertainties and subdued global economic conditions. As of June 13, 2025, foreign exchange reserves remain strong, standing at USD 699 billion, which provides an import cover of 11.5 months. Additionally, the Indian rupee has experienced moderate volatility, in contrast to the more pronounced adjustments observed in other economies, the ministry said. The labour market indicators show signs of stability. "White-collar hiring witnessed a rise in hiring with core sectors such as AI/ML professionals, Insurance, Real Estate, BPO/ITES, and Hospitality leading the hiring growth. The employment sub-indices of the PMI indicate strong employment growth, with the employment sub-indices reaching a high. Formal job creation is also on the rise, as indicated by the growing net payroll additions under the Employee Provident Fund Organisation," it added. As was widely expected, the Indian economy grew by 6.5 per cent in real terms in the recently concluded financial year 2024-25, official data showed recently. The Reserve Bank of India had projected 6.5 per cent GDP growth for the fiscal year 2024-25. In 2023-24, India's GDP grew by an impressive 9.2 per cent, continuing to be the fastest-growing major economy. According to official data, the economy grew 8.7 per cent and 7.2 percent, respectively, in 2021-22 and 2022-23. This February, the World Bank said India will need to grow by 7.8 per cent on average over the next 22 years to achieve its aspirations of becoming a developed country by 2047. However, the World Bank asserted that getting there would require reforms and their implementation to be as ambitious as the target itself. To realise the vision of 'Viksit Bharat', a developed nation dream by 2047, India will need to achieve a growth rate of around 8 per cent at constant prices, on average, for about a decade or two, the Economic Survey document for 2024-25 tabled on January 31 asserted. India has made quite a turnaround, climbing the ladder of economic growth. This can be gauged from the 11th in 2013-14, India has positioned itself to become the fourth largest economy in 2025-26. Even as India has overtaken many countries in terms of the size of the economy over the past decade, the per capita income in India however remains very low.
Times of Oman
8 hours ago
- Politics
- Times of Oman
4415 Indians evacuated from conflict zones in Iran, Israel via 19 special flights: MEA
New Delhi: The Indian government has initiated Operation Sindhu to evacuate Indian nationals from conflict zones in Iran and Israel amid escalating tensions in West Asia. The operation, which began on June 18, has successfully evacuated over 4415 Indian nationals so far. "A total of 4415 Indian nationals (3597 from Iran and 818 from Israel) have been evacuated so far using 19 special evacuation flights, including 3 IAF C-17 aircraft. 14 OCI card-holders, 9 Nepali nationals, 4 Sri Lankan nationals and 1 Iranian spouse of an Indian national were also evacuated from Iran," the Ministry of External Affairs said. "The evacuated Indian nationals included more than 1500 women and 500 children," it added. According to MEA, on 17-18 June, Indian Missions in Tehran, Yerevan, and Ashgabat coordinated the evacuation of Indian nationals from Iran through land border crossings to Armenia and Turkmenistan. Special evacuation flights commenced on 18 June and facilitated the return of Indian nationals to New Delhi. The majority of evacuations were carried out through Mashhad, following Iran's opening of its airspace for evacuation flights under Operation Sindhu on June 20 at India's request. "We thank the Government of Iran for this gesture. A total of 3597 Indian nationals -- including students, workers, professionals, pilgrims and fishermen - from more than 15 Indian states - were brought back to India from Yerevan, Ashgabat and Mashhad from June 18 to 26using 15 special evacuation flights," as per MEA. The Israel leg of Operation Sindhu commenced on June 23. Indian Missions in Tel Aviv, Ramallah, Amman and Cairo facilitated the movement of Indian nationals across land borders to Jordan and Egypt. A total of 818 Indian nationals were evacuated, including students, workers and professionals. They were evacuated from Amman and Sharm al Sheikh from June 22 to 25 using four evacuation flights including 3 IAF C-17 aircraft. MEA noted that, "in view of the reopening of the airspace, evacuation operations were halted on June 25. Further actions will be taken based on the evolving situation in West Asia." The Government of India is deeply committed to the safety and well-being of its citizens abroad. Under PM Narendra Modi's guidance, Operation Sindhu is another demonstration of this commitment, said the MEA.
Times of Oman
8 hours ago
- Politics
- Times of Oman
Khamenei warns of future retaliation, says Trump exaggerated US strikes
Tehran: Iran's Supreme Leader Ayatollah Ali Khamenei claimed that US President Donald Trump had "exaggerated" the impact of recent strikes on Iranian nuclear sites, while warning of further retaliation, The Times of Israel reported. In a televised address on Thursday, Khamenei made his first appearance in more than a week after reportedly going into hiding amid an Israeli air campaign that killed many of his top generals. He hailed Iran's "victory" in the 12-day war with Israel, claiming that Tel Aviv's offensive had "almost collapsed" following Iranian strikes. "The American president exaggerated events in unusual ways, and it turned out that he needed this exaggeration," Khamenei said, as quoted by The Times of Israel. "The United States has gained nothing from this war," he added, claiming American strikes "did nothing significant" to Iran's nuclear program. Khamenei described the Iranian missile attack on the Al-Udeid air base in Qatar, which houses US troops, as a "severe slap to the face of America" and warned that such actions could be repeated. He said, "Should any aggression occur, the enemy will definitely pay a heavy price. Surrender will never happen. Our nation is powerful." The Times of Israel reported that Khamenei accused the United States of intervening only to prevent Israel's complete collapse, saying, "It felt that if it did not intervene, the Zionist regime would be utterly destroyed." "I want to congratulate the great Iranian nation... for its victory over the fallacious Zionist regime," he said. The 86-year-old leader, appearing in front of a plain backdrop similar to a previous June 19 message, may still be in hiding. According to The Times of Israel, Israel's campaign, launched on June 13, involved a sweeping assault on top Iranian military leaders, nuclear scientists, uranium enrichment sites, and ballistic missile infrastructure. In response, Iran fired around 550 ballistic missiles and 1,000 drones at Israel, with most intercepted. Some impacted civilian areas, killing 28 and injuring thousands. The conflict concluded with a US-brokered ceasefire. However, both nations have claimed victory. Trump stated the US strikes had "obliterated" Iran's nuclear facilities, while CIA chief John Ratcliffe claimed key sites were destroyed and would take years to rebuild. Meanwhile, the Israeli military said the strikes had dealt a "significant" blow, though full assessment is pending.
