India will require nearly Rs 80 lakh crore in urban infrastructure investment by 2037 to support rapid urbanisation and economic growth, according to a report by Brickwork Ratings.

The report highlighted urban areas are expected to contribute nearly 70 per cent of India's GDP by 2036, making sustainable financing for cities a national priority.

It said the Urban Challenge Fund, a Rs 1 lakh crore central government-backed scheme, is aimed at changing the urban financing model by moving cities from grant-based support to market-based funding. It said the scheme could help generate nearly Rs 4 lakh crore in urban investment over five years.

The Reserve Bank of India (RBI) is expected to pay the highest-ever dividend to the government, providing the Centre with a fiscal cushion to address challenges arising from the ongoing Middle East crisis, sources said.

Last year the RBI made a record dividend payout of Rs 2.69 lakh crore to the central government for 2024-25, 27 per cent higher than Rs 2.11 lakh crore transferred in the previous year.

RBI is likely to decide about dividend quantum in its board meeting expected to be held during this month, sources said.

Commerce and Industry Minister Piyush Goyal on Thursday pitched for aligning standards and customs procedures between India and Africa to boost bilateral trade.

He also said that the African Continental Free Trade Area (AfCFTA), valued at nearly USD 3.4 trillion, along with India's rapidly expanding USD 4 trillion economy, presents immense opportunities to create resilient partnerships, diversify supply chains, and move beyond raw material trade towards higher-value manufacturing and integrated value chains.

India has been included in the European Union's revised draft list for continued export of aquaculture products to the 27-nation bloc, a move that is expected to ensure uninterrupted shipments of these goods beyond September this year, an official statement said on Thursday.

The revised draft list was published by the European Union on May 12 after India undertook compliance measures in line with the European Commission Delegated Regulation, which requires exporting countries to ensure that animals and animal products exported to the EU are free from the use of antimicrobial medicines.

India’s fiscal deficit in FY27 may overshoot the budgeted target to some extent as the Centre is implementing a series of relief and stabilisation measures to shield citizens, farmers and businesses from the fallout of the escalating West Asia conflict, sources told FE.

However, they stressed, the slippage would remain “manageable” given the government’s relatively stronger fiscal position thanlks to several years of post-pandemic consolidation.

Govt Wednesday said it is going ahead with planned capital expenditure, developmental spend and subsidy payments, and no budget cuts were planned. Days after PM Narendra Modi's calls for reducing non-essential spends such as overseas weddings, fuel consumption and fertiliser use, officials argued there was no plan for "austerity", which usually suggests budget cuts, reduced govt spending, lower subsidies and fiscal tightening.
"PM Modi's appeal is not about spending less. It is about spending more wisely by reducing fuel consumption, avoidable dependence on imported goods and foreign-currency-intensive services... govt is not implementing austerity measures which have negative economic connotations," an official said.

As fears grow over rising oil prices and tensions around the Strait of Hormuz, Russian Foreign Minister Sergey Lavrov has tried to reassure India that Moscow will continue protecting New Delhi’s energy interests no matter how intense Western pressure becomes.

In a recent conversation with RT India, largely focused on energy, sanctions and the future of the India-Russia relationship, Lavrov said Russia has “never failed” India when it comes to energy supplies and accused the United States of trying to dominate global oil and gas routes.

With PM Modi’s austerity call earlier this week, the country is worried about the potential fallout of the prolonged crisis across West Asia. According to Morgan Stanley’s mid-year outlook for India, the real GDP growth is estimated to be at 6.7% for FY27 and 7% for FY28.

The Morgan Stanley report stated that the slowdown is largely a consequence of the ongoing Middle East conflict and its effects on global energy prices, not a sign of anything structurally wrong with India’s growth story. Domestic demand, they argue, remains the economy’s anchor.

India’s wholesale inflation unexpectedly accelerated to 8.3% in April, its fastest pace in three-and-a-half years, as surging energy costs triggered by the Middle East conflict pushed up fuel and manufacturing prices across the economy, government data showed on Thursday.

The surge comes even as the government has largely kept retail prices of petrol, diesel and domestic cooking gas unchanged despite a sharp rise in global crude oil prices, cushioning households from an immediate pass-through in fuel costs.

Tamil Nadu, Uttar Pradesh, Mizoram and Delhi have been categorised as 'exemplars' while 11 states and UTs including Gujarat and Kerala are 'high performers' in the logistics performance ranking, as per the Logistics Ease Across Different States (LEADS) 2025 report released Wednesday.

The report presents a national assessment of logistics performance across states and UTs based on policy, infrastructure, service delivery and regulatory dimensions in the logistics sector.

India has reportedly approached the United States to extend its waiver on Russian oil imports as the Strait of Hormuz continues to see disruptions for 75 days now, straining oil supplies across the world.
The US had first cleared the arrangement in March and expanded it later with the current authorisation set to remain valid until May 16. The waiver was introduced to help stabilise oil markets by allowing additional crude supplies. While Russian oil is not under blanket sanctions, Washington has repeatedly urged India to reduce discounted purchases as part of efforts to pressure Moscow over the war in Ukraine, Bloomberg reported.
With the Middle East crisis that began on February 28 still intensifying, Indian officials have told Washington that securing a stable energy supply remains a priority. They have also warned that continued volatility in oil markets could have broad economic consequences.

ndia and UAE are expected to sign two MoUs on Friday to boost LPG supplies here and energy security during PM Narendra Modi’s brief visit to the Gulf state on Friday.

During the PM's visit to UAE, one of the key areas of focus will be energy security. Two important MoUs in the areas of LPG and Strategic Petroleum Reserves are likely to be concluded during this visit on Friday, a source informed.

Oil PSU, Hindustan Petroleum has posted a whopping double-digit rise in its consolidated net profit driven largely by higher crude throughput at its Visakhapatnam and Mumbai refineries, along with improved refining margins. The company’s board has also recommended a final dividend for FY26.

The recent slowdown in foreign direct investment in India is "not a major source of alarm" as global capital is increasingly drawn toward the electronics and AI investment cycle across Asia, said Taimur Baig, managing director and chief economist at DBS Bank.

Edited excerpts from an interview with Deepshikha Sikarwar.

Morgan Stanley has raised India's FY27 growth forecast to 6.7% from 6.2%, citing strong domestic demand despite global uncertainties. While the ongoing Iran conflict and elevated oil prices could pressure growth, the firm believes urban demand, government spending on infrastructure and defence, and services exports will help offset the impact.

For FY28, it projects gross domestic product (GDP) growth of 7%. India's FY26 growth is estimated at 7.6%, based on government data.

Market veteran and celebrated banker Uday Kotak said that India needs to reduce its dependence on foreign capital and focus on building a strong domestic pool of long-term risk capital to achieve true economic self-reliance.

Speaking at a Confederation of Indian Industry (CII) event, Kotak said a genuinely self-reliant country is the one that “does not need to depend on somebody else’s money or power.”

The Comprehensive Economic Partnership Agreement (CEPA) between India and Oman is likely to come into effect from June 1 while the free trade agreement with Chile can be finalised if India can get a good deal on critical minerals, Commerce and Industry Minister Piyush Goyal said Tuesday.

“I have had a very good meeting with the Oman team today and most probably the Oman free trade agreement will come into effect from 1st of June, 2026,” he told reporters on the sidelines of CII Annual Business summit.

India is facing a “live balance of payments stress test” due to the ongoing West Asia crisis, but the country’s macroeconomic fundamentals and reform momentum place it in a stronger position than many emerging economies to weather the turbulence, chief economic advisor V Anantha Nageswaran said on Tuesday.

He cautioned that the conflict in West Asia has moved beyond a geopolitical concern and now poses direct risks to inflation, the current account deficit (CAD), the balance of payments (BoP), and the rupee.

Retail food inflation remained in positive territory for four consecutive months in April, with a year-on-year rise of 4.2% in the relevant index, as tomatoes and coconuts became costlier.

Sequentially, All India Consumer Food Price Index (CFPI) rose by 0.25% last month, compared to March, 2026. Food inflation was 3.87% in March 2026.

India’s economic discourse has always preferred optimism to realism. Even when growth slows, demand weakens, or global risks rise, policymakers and industry forums rarely deviate from the script: India will remain the world’s fastest-growing major economy; consumption will rebound next quarter; reforms are around the corner; the long-term story is intact, etc. Which is why Uday Kotak’s warning on Tuesday matters.