Economy

The Indian rupee has appreciated against the US dollar, reflecting a combination of strong foreign capital inflows, robust domestic market sentiment, and expectations of upcoming IPO subscriptions. Analysts highlight that anticipated inflows from public offerings and increased foreign institutional investment are supporting the currency, alongside stable macroeconomic indicators and improving trade balances.

India’s services sector growth moderated in September, according to the latest Purchasing Managers’ Index (PMI) data, reflecting a slowdown in new business inflows and weaker demand pressures. While the sector continues to expand, the pace has eased compared with previous months, signaling caution among service providers amid rising input costs and global economic uncertainties. Key sub-sectors such as IT, finance, and hospitality showed mixed performance, with employment growth remaining moderate.

India and Singapore have reinforced their economic and strategic partnership following a high-level visit by India’s Commerce and Industry Minister, Piyush Goyal, to Singapore. The visit focused on enhancing bilateral trade, investment flows, and technological collaboration, particularly in sectors such as digital innovation, renewable energy, and advanced manufacturing. Key agreements and frameworks were discussed to facilitate ease of doing business and strengthen supply chain integration.

India and Singapore are intensifying economic cooperation to foster trade and investment growth, reflecting both nations’ commitment to deepening bilateral ties. High-level discussions between government officials and industry stakeholders have highlighted opportunities in technology, finance, infrastructure, and manufacturing sectors. Singapore, as a strategic investor and financial hub, is expected to play a pivotal role in supporting India’s economic modernization and global integration.

The Indian government has heightened its scrutiny of Goods and Services Tax (GST) compliance within the e-commerce sector, signaling a determined effort to tighten regulatory oversight in one of the economy’s fastest-growing industries. With online retail expanding at double-digit rates and millions of small sellers entering digital marketplaces, authorities are focusing on ensuring accurate tax reporting, transparency, and adherence to compliance frameworks.

Pakistan is set to undergo a crucial International Monetary Fund (IMF) loan review, with approximately USD 7 billion in financial assistance hanging in the balance. The review, aimed at evaluating Pakistan’s fiscal and structural reforms, will determine the continuation of IMF support under the existing Extended Fund Facility (EFF). Analysts emphasize that timely approval is critical for Pakistan to stabilize its foreign exchange reserves, manage external debt obligations, and sustain macroeconomic stability.

India’s economy is forecasted to expand at 6.5% in the fiscal year 2025-26, reflecting steady domestic demand, investment growth, and resilient consumption patterns. However, analysts caution that rising US tariffs and global trade tensions may pose headwinds for India’s export-driven sectors, potentially affecting the country’s trade balance and manufacturing growth. Policymakers are expected to monitor these external developments closely while implementing structural reforms to sustain growth momentum.

India and the European Free Trade Association (EFTA) are set to deepen economic ties following the signing of a landmark trade agreement projected to facilitate investments worth up to USD 100 billion. The pact aims to enhance bilateral trade, reduce tariffs, and create a framework for investment flows across key sectors, including manufacturing, technology, and renewable energy. Government officials and industry leaders anticipate that the agreement will boost India’s export potential, attract foreign direct investment, and support industrial modernization.

An Indian delegation recently attended the P20 Summit in South Africa, aiming to reinforce strategic economic partnerships and explore opportunities for trade, investment, and technological collaboration. The delegation, comprising senior government officials, business leaders, and industry experts, engaged in high-level discussions with counterparts from partner countries to address shared economic priorities and sustainable development goals. Focus areas included infrastructure financing, renewable energy, digital innovation, and capacity building.

The Indian government has announced the extension of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme until March 2026, providing continued relief to exporters grappling with global uncertainties and competitive pressures. The program, which reimburses embedded taxes and duties not refunded through other mechanisms, is designed to enhance the cost competitiveness of Indian goods in international markets.