India’s foreign exchange reserves rebounded by $938 million to $682.321 billion in the week ending May 28, reversing the previous week’s decline. This rise was primarily driven by an increase in foreign currency assets, despite a dip in gold reserves. The overall reserves had previously fallen due to Middle East conflict-related interventions.
India and the US are making rapid progress towards resolving the remaining issues in their proposed interim trade arrangement, with both countries expected to implement the first phase of the agreement by the middle of next month, Goyal said.
At constant prices, real GDP for the January-March quarter is estimated to have been at Rs 87.77 lakh crore, compared with Rs 81.40 lakh crore in the corresponding period of the previous fiscal year. Nominal GDP during the quarter is estimated at Rs 94.65 lakh crore, reflecting growth of 9.1%.
RBI Governor Sanjay Malhotra cautioned that a potential south-west monsoon deficit could dampen rural demand and private consumption. While government initiatives aim to mitigate this, rising energy prices and supply disruptions also pose growth risks. The central bank consequently lowered its FY27 GDP growth forecast to 6.6%.
India is projected to overtake China in global GDP share by 2060, as China’s economic contribution is expected to stabilize and decline. This shift is driven by China’s rapidly falling population share, contrasting with India’s trajectory. The report also notes significant inequality differences between the two Asian giants.
The Reserve Bank of India is considering introducing polymer currency notes, a move that could enhance durability and security. Governor Sanjay Malhotra stated the proposal is in its preliminary stages, with the central bank examining its advantages and disadvantages. This initiative aims to address the rapid deterioration of existing paper notes and combat fake currency
Soaring gold prices are driving a surge in old gold exchanges at jewellery stores, now comprising nearly half of sales for major chains. Consumers are leveraging existing jewellery to fund new purchases, a trend amplified by increased import duties and government calls to curb non-essential buying.
Russian President Vladimir Putin expressed confidence that bilateral trade with India will reach $100 billion in the coming years, citing growing cooperation in energy, investments, and strategic sectors. He highlighted India’s impressive economic growth and described New Delhi as a reliable partner, emphasizing the strong foundation for expanding economic engagement.
Gold price prediction today: Gold prices seem to be exhibiting weak intraday bias, says Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities. He recommends a sell on rise strategy.
