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With the launch of the Rs 62,500 crore Mobile Phone Manufacturing Scheme (MPMS), India is eyeing its homegrown smartphone brands - with every aspect from design, R&D to components and manufacturing taking place in the country.
The recent imposition of new tariffs on vehicles and construction materials has intensified the trade conflict between the US and Canada. This has also led to surging import taxes on other household products and alcoholic beverages. Both businesses and consumers are likely to feel the pinch with escalating costs, potentially affecting employment rates. Moreover, these disputes cast a shadow of uncertainty over the USMCA trade agreement.
Six months into the war, global economic fears have not fully materialized. Oil prices surged initially but have since eased from their peak. Financial markets have recovered strongly, boosted by artificial intelligence optimism. Airlines and farmers face increased costs, impacting travelers and food security. Clean energy and defense contractors have emerged as significant beneficiaries.
India proudly announces the achievement of its fiscal deficit target for 2025-26, showcasing commendable fiscal discipline. With a clear vision, the government aspires to maintain a 50 percent debt-to-GDP ratio by 2030. This fiscal prudence was executed without compromising social welfare or infrastructure investment. Notably, smart arrangements and subsidies enabled the smooth supply of fertilisers. Meanwhile, India navigates the complex landscape of bilateral trade agreements, as multilateral efforts progress slowly.
India's economy is poised for significant growth in FY27, with forecasts suggesting an expansion between 7 and 7.2 percent. This anticipated surge in economic activity will be driven by strong domestic demand and government investment initiatives. Notably, manufacturing is showing an impressive rebound, although inflation poses a considerable threat by affecting wholesale prices. Meanwhile, challenges in the external sector hint at the need for effective import reduction measures.