In this edition...
• Market overview: India market update
• Tariff turbulence: Can India stay resilient?
• India’s consumption engine: Structural and scalable
India’s economy maintained broad stability in July, even as equity markets posted their sharpest monthly decline this year and renewed U.S. tariff measures added fresh trade uncertainty. Inflation dropped to its lowest level since 2017, aided by food price deflation, while S&P Global upgraded India’s sovereign rating in recognition of strong macro fundamentals. GST collections rose from June levels, supported by steady consumption and trade activity, and rural demand indicators strengthened on the back of favourable monsoons and targeted subsidies.
However, sector performance was mixed, with resilience in consumer staples, healthcare, and discretionary spending offset by weakness in IT, real estate, and energy. External balances improved, corporate balance sheets remain healthy, and domestic investor inflows continued to cushion volatility, even as global headwinds and uneven sectoral trends temper the near term outlook.
How could these shifts in trade, inflation, and consumption shape India’s outlook in the months ahead?
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