Business

Provisional data from the Controller General of Accounts indicates the Centre met its 4.4% of GDP fiscal deficit target for 2025-26, an improvement from the previous year’s 4.8%. Government revenue reached 98.8% of revised estimates, while total expenditure also stood at 98.8% of the revised target for the financial year.

India and the UK are set to discuss contentious steel safeguard measures and the proposed Carbon Border Adjustment Mechanism (CBAM) this week, posing significant hurdles to their free trade agreement. New Delhi is concerned about reduced steel import quotas and potential carbon taxes impacting exports, hinting at possible retaliatory measures.

Amidst a volatile global market and Middle East disruptions, India has launched a second tender for 70 lakh tonnes of urea to secure sufficient fertilizer for the kharif season. Despite soaring international prices, the government is ensuring supplies, with 25 lakh tonnes of urea and 50 lakh tonnes of DAP already procured.

India’s industrial production saw a robust 4.9% growth in April 2026, propelled by a strong manufacturing sector. The newly revised IIP series, with a 2022-23 base year, highlights significant gains in motor vehicles, electrical equipment, and machinery. Investment-linked sectors like capital goods also showed impressive surges, indicating positive economic momentum.

India’s UPI transactions reached record highs in May, with 23.2 billion transactions valued at Rs 29.90 lakh crore. This growth, driven by summer travel and seasonal spending, signifies a healthy upward trajectory for the digital payments ecosystem. Future expansion is anticipated through Credit-on-UPI and cross-border initiatives.

India’s manufacturing sector saw its fastest growth in three months during May, fueled by robust domestic demand and infrastructure projects. New orders surged, though rising Middle East conflict costs continue to challenge manufacturers. Despite higher input expenses, companies expanded output and hiring, with positive sentiment for future growth.

India and the United States are nearing the finalization of their first bilateral trade agreement tranche, with most key details settled. A high-level US delegation is in New Delhi for crucial negotiations, aiming to conclude an interim pact. Both nations are confident of signing the agreement soon, building on a framework established in February.

Amidst Middle East chaos impacting the Strait of Hormuz, India’s new free trade agreement with Oman, effective June 1, offers a strategic alternative. Oman’s location outside the Strait provides a reliable gateway for trade and energy, as evidenced by recent import surges from the nation.