Business

The Fertiliser Ministry is requesting a 100% increase in the subsidy budget for FY27, seeking to double it to Rs 1.71 lakh crore. This surge is driven by rising global fertiliser prices and import costs due to the West Asia conflict, potentially pushing the subsidy bill over Rs 3 lakh crore this fiscal.

Aviation turbine fuel prices rose by 10% as a government-backed price stabilization scheme locks in rates for airlines at Rs 115 per litre for up to three years. This voluntary scheme aims to shield carriers from global oil price volatility, with the government providing interest-free advances to oil companies if benchmark prices exceed Rs 86.32

Indian markets saw a positive trend as US stocks rallied, driven by a strong comeback in AI-linked technology shares. Lower oil prices provided further relief, boosting airline stocks and easing bond market pressure. Investors are now keenly awaiting crucial US inflation data, with expectations of a potential Federal Reserve rate hike later this year.

A five-day BRICS meeting commenced in Indore, focusing on food security, climate-resilient agriculture, and farmer welfare. Officials are deliberating on enhancing cooperation and jointly addressing challenges like climate change’s impact and agricultural financing. The discussions aim to boost trade and technology exchange among member nations.

India’s economic outlook is darkening due to rising oil prices, fertilizer costs, and supply disruptions from the Iran conflict. Economists warn of escalating inflation, slower growth, and strained government finances. The nation, heavily reliant on oil imports, faces significant economic challenges as global energy prices surge, impacting its balance of payments and fiscal health.