India's exports to its BRICS partners increased by 34% during April-August of the 2026-27 financial year, reaching a total of $19.9 billion. This growth highlights strengthening trade relationships within the bloc. Exports to China alone surged by 39%, making it a key driver of this overall increase. Beyond BRICS, India also saw notable export gains to other major economies. Shipments to Japan rose by 43%, primarily due to increased demand for energy products and electronics. Exports to Italy and South Korea also experienced positive growth, indicating a broader expansion of India's international trade footprint. This export surge is a positive sign for India's economic outlook and its integration into global supply chains.

India's BRICS Exports Surge 34% to $19.9 Billion in FY27

India's pulses production reached a record 27.4 million tonnes (mt) in the 2025-26 agricultural year. This marks a significant increase from 25.6 mt recorded in the previous year. The growth in pulses output was primarily driven by higher yields of major crops like chana (chickpea) and moong (green gram). Additionally, cereals production also saw a rise of approximately 5%, reaching 349.1 mt in 2025-26, up from 332 mt in the preceding year. This overall increase in agricultural output, particularly for essential food items like pulses and cereals, has contributed to the stability of food prices across the country. The improved supply has also led to an easing of sugar rates in the market.

India's Pulses, Cereals Output Rises in 2025-26, Stabilizing Food Prices

The Income Tax Department has notified eight key changes in the tax audit report Form 3CD for the Assessment Year (AY) 2026-27. These amendments aim to enhance transparency and streamline the reporting process for taxpayers and auditors. One major change requires reporting details of income from virtual digital assets (VDAs), including cryptocurrency. Auditors must now also provide information on income from business trusts and investment funds. The updated Form 3CD mandates reporting of details regarding capital gains from the transfer of VDAs. Furthermore, it includes new clauses for reporting income from specified funds and details of any revaluation of assets. These changes are crucial for businesses and professionals who are required to get their accounts audited under the Income Tax Act, 1961. The modifications reflect the government's focus on bringing new-age financial instruments and complex investment structures under closer scrutiny for tax purposes.

Tax Audit Form Changes for AY 2026-27: 8 Key Updates

India's net direct tax collections grew by 13% to reach ₹12.1 trillion. This growth was recorded up to a specific period in the current financial year. Gross direct tax collections also saw a substantial rise of 15.19%, totaling ₹14.32 trillion during the same period. After accounting for refunds, net corporate tax collections increased by 19.48%. This indicates a strong performance in corporate tax revenue. The increase in direct tax collections is a positive sign for the government's fiscal health. It suggests that both individual and corporate taxpayers are contributing more to the national exchequer. The government aims to meet its revenue targets through these collections, which are crucial for funding various public welfare schemes and infrastructure projects.

Direct Tax Collections Rise 13% to ₹12.1 Trillion

Moody's, a leading global credit rating agency, recently revised India's economic growth forecast for the fiscal year 2026-27 (FY27) upwards to 7%. This marks an increase from its previous estimate of 6.6%. The agency highlighted India's robust economic performance and strong domestic demand as key drivers for this optimistic outlook. However, Moody's also cautioned about potential inflation risks, particularly from volatile food prices and high crude oil costs, which could impact the growth trajectory. The report noted that the Indian economy continues to show resilience despite global headwinds. Moody's expects the government's capital expenditure and private sector investment to further support this growth. The agency's assessment provides an important perspective on India's economic stability and future prospects.

Moody's Raises India's FY27 Growth Forecast to 7%

The National Bank for Financing Infrastructure and Development (NABFID) has sanctioned loans worth ₹3,000 crore to four data centre projects. This move aims to support the growth of digital infrastructure in India. The loans are part of NABFID's broader strategy to fund large-scale infrastructure projects across various sectors. Data centres are crucial for storing and processing digital information, supporting cloud services, e-commerce, and other digital initiatives. NABFID, established in 2021, plays a key role in providing long-term finance for infrastructure development, which is vital for India's economic growth. These sanctions highlight NABFID's commitment to strengthening the country's technological backbone and meeting the increasing demand for data storage and processing capabilities.

NABFID Sanctions ₹3,000 Crore Loans for 4 Data Centres

The Maharashtra Food and Drug Administration (FDA), led by Commissioner Tukaram Mundhe, has initiated a move to cap prices of medical consumables used in hospitals. The FDA found significant differences between the procurement costs of these supplies and their Maximum Retail Prices (MRPs). This initiative aims to bring transparency and affordability to medical treatments. The Maharashtra FDA has written to the National Pharmaceutical Pricing Authority (NPPA) to intervene and set price ceilings for these items. This action follows concerns about hospitals charging exorbitant rates for essential medical supplies like syringes, gloves, and catheters. The Maharashtra FDA's investigation revealed that some consumables were being sold at markups of over 1000%. This step by the Maharashtra FDA is expected to benefit patients by making healthcare more accessible and reducing out-of-pocket expenses.

Maharashtra FDA Seeks NPPA Price Caps on Hospital Consumables

India has approved the import of 642 cars from the United Kingdom under the tariff-rate quota provisions of the India-UK Comprehensive Economic Trade Agreement (CETA). This marks the first allocation since the trade pact came into effect on July 15. Seven out of eight companies that applied for these quotas received approval. The agreement allows for concessional duties on these imports, which are expected to eventually decrease to 10%. This move is a significant step in implementing the trade agreement between India and the UK, facilitating smoother trade relations and potentially making UK-manufactured cars more accessible in the Indian market. The India-UK CETA aims to boost bilateral trade and economic cooperation.

India Clears 642 UK Car Imports Under FTA Tariff Quota

The Employees' Provident Fund Organisation (EPFO) has increased the mandatory wage ceiling for provident fund contributions from ₹15,000 to ₹25,000 per month. This is the first revision by the EPFO in 12 years. The move will bring an additional 5.1 million workers under the mandatory social security net. This expansion means that employees earning up to ₹25,000 monthly will now be required to contribute to the Employees' Provident Fund (EPF) scheme. The revision aims to provide social security benefits to a larger segment of the workforce. However, it will also lead to increased contribution costs for both employers and the newly covered employees. The EPFO's decision reflects a broader effort to enhance financial security for workers in India.

EPFO Wage Ceiling Hiked to ₹25,000 After 12 Years

New Zealand's Parliament recently approved measures that clear the path for the implementation of a Free Trade Agreement (FTA) with India. This parliamentary approval marks a significant step towards finalising the India-New Zealand FTA. Both countries have outlined detailed provisions covering various aspects of trade and economic cooperation. These areas include trade in goods and services, investment, agriculture, and mobility. The agreement also addresses customs procedures, aiming to streamline the movement of goods between the two nations. The India-New Zealand FTA is expected to boost bilateral trade and strengthen economic ties. This development follows extensive discussions and negotiations between India and New Zealand to foster closer economic partnership.

India-New Zealand FTA: New Zealand Parliament Clears Trade Deal Path

The New Zealand Parliament recently passed legislation to implement a Free Trade Agreement (FTA) with India. This landmark agreement is expected to take effect in the second half of October. The FTA will provide immediate duty-free access for over half of New Zealand’s exports to India. This includes various products such as kiwifruit, apples, and wine. In return, the agreement is designed to boost key Indian sectors by offering preferential access to the New Zealand market. The FTA aims to strengthen trade relations and economic cooperation between the two countries. It is anticipated to increase bilateral trade volumes and create new opportunities for businesses in both India and New Zealand. The New Zealand government sees this as a crucial step in diversifying its trade relationships.

New Zealand Parliament Passes India FTA Legislation

India's merchandise exports increased by 26.12% year-on-year in August, reaching a total of $43.81 billion. This surge in exports helped to narrow the country's trade deficit. Despite this, imports also rose by 14% during the same period, totaling $70.67 billion. The narrowing of the trade deficit was further supported by a notable decline in gold imports. A lower trade deficit is generally seen as a positive sign for the economy, indicating a healthier balance between goods sent out and goods brought into the country. The government aims to boost exports to achieve economic growth targets and strengthen India's position in global trade.

India's Trade Deficit Narrows in August Due to Export Surge

Migrants sent a total of $728.6 billion to their families in low and middle-income countries during 2025. This figure represents almost double the amount recorded just a decade earlier, highlighting the growing importance of remittances for developing economies. The data comes from a new report published by the UN’s International Fund for Agricultural Development (IFAD). These remittances play a crucial role in supporting livelihoods, reducing poverty, and boosting economic development in many nations. The report emphasizes the resilience of migrant workers and their continued contribution to their home countries, even amidst global economic challenges. The International Fund for Agricultural Development (IFAD) tracks these financial flows to understand their impact on rural development and food security.

Migrant Remittances Double to $728.6 Billion in a Decade

Migrants sent a record $728.6 billion home to their families in low and middle-income countries in 2025. This figure is nearly double the amount recorded just a decade earlier, according to a new report from the UN’s International Fund for Agricultural Development (IFAD). The report emphasizes the crucial role of these remittances in supporting millions of households globally. These funds often provide essential income for food, education, healthcare, and housing in the migrants' home countries. The increase in remittances reflects growing global migration trends and the dedication of migrants to support their families. IFAD's findings underscore the economic impact of these financial flows on developing nations.

Migrant Remittances to Low-Income Nations Nearly Double in Decade

Retail inflation in India has surpassed the Reserve Bank of India's (RBI) midpoint target of 4% for the third month in a row. This persistent rise in the Consumer Price Index (CPI) indicates ongoing price pressures in the economy. The RBI has a mandated inflation target range of 2% to 6%, with 4% being the ideal midpoint. Breaching this midpoint consistently suggests that inflationary forces are stronger than anticipated. This trend could influence the RBI's future monetary policy decisions, potentially leading to a more hawkish stance to control rising prices. The central bank closely monitors retail inflation as a key indicator for economic stability and purchasing power.

Retail Inflation Breaches RBI's Midpoint Target for Third Month

India's Consumer Price Index (CPI) inflation rose to 4.82% in August 2023. This marks an increase from 4.45% recorded in the previous month. The primary reason for this surge was a significant rise in food prices, particularly vegetables. The Ministry of Statistics and Programme Implementation (MoSPI) released these figures. The Reserve Bank of India (RBI) aims to keep inflation within a target range of 2% to 6%. The August inflation data shows that it remains within this target band, but closer to the upper limit. This trend is closely watched by the RBI for its monetary policy decisions, including interest rate adjustments. The rural CPI inflation also saw an increase, reflecting the impact on a large segment of the population.

India's CPI Inflation Rises to 4.82% in August 2023

The Western Dedicated Freight Corridor (WDFC) is now fully operational, marking a significant milestone for India's logistics infrastructure. This corridor provides a 1,506-km long dedicated route for freight trains, connecting Dadri in Uttar Pradesh to Jawaharlal Nehru Port (JNPT) in Mumbai, Maharashtra. The WDFC is part of a larger network of Dedicated Freight Corridors (DFCs) aimed at decongesting existing railway lines and speeding up goods transportation. With the WDFC's completion, India now has a total of 2,843 km of operational DFCs, including parts of the Eastern Dedicated Freight Corridor (EDFC). These corridors are crucial for improving the efficiency and speed of freight movement, which will help reduce logistics costs and boost economic growth. The WDFC project was developed by Dedicated Freight Corridor Corporation of India Limited (DFCCIL).

Western Dedicated Freight Corridor Fully Operational in India

The National Bank for Agriculture and Rural Development (NABARD) has launched a strategy to promote livelihood opportunities in Assam based on products holding Geographical Indication (GI) tags. This initiative focuses on leveraging the unique identity and market value of GI-tagged products from the state. NABARD aims to support artisans and farmers involved in producing these items, helping them access better markets and improve their income. The strategy includes capacity building, financial assistance, and market linkages for producers of GI-tagged goods. By focusing on GI products, NABARD seeks to protect traditional knowledge, enhance product quality, and ensure fair returns for the producers in Assam. This move is expected to contribute significantly to the economic upliftment of rural areas in Assam.

Economy