Economy

India is exploring opportunities to play a larger role in Australia’s housing sector, with discussions underway to leverage financing from the United Arab Emirates. The plan, still in its early stages, envisions Indian construction and infrastructure firms contributing to the development of residential projects in Australia, where demand for affordable housing has surged. The inclusion of UAE investors would not only provide critical funding but also strengthen trilateral economic cooperation between India, Australia, and the UAE.

Gold prices in India surged to fresh record highs this week, reflecting both global economic turbulence and strong domestic demand. The precious metal, traditionally seen as a safe-haven asset, gained momentum as investors grew wary of global growth prospects, persistent inflation, and geopolitical risks. In India, where gold plays a dual role as an investment and cultural staple, higher prices have sparked both enthusiasm and caution among buyers.

The Indian rupee has plunged to a record low against the US dollar, reflecting a convergence of global and domestic pressures that are reshaping currency markets. A combination of rising crude oil prices, persistent foreign capital outflows, and a stronger greenback has eroded investor confidence in the rupee. While the Reserve Bank of India (RBI) has intervened periodically to curb volatility, its efforts have only slowed the pace of depreciation, not reversed the trend.

India’s economy continues to display strong momentum, but potential risks from rising global tariffs and protectionist trade measures could weigh on growth prospects, according to the Reserve Bank of India’s (RBI) latest bulletin. While domestic demand remains robust and key macroeconomic indicators show resilience, the bulletin underscores that global trade fragmentation and tariff hikes—particularly from advanced economies—pose challenges for emerging markets like India.

The Andhra Pradesh government has approved investment proposals worth Rs. 53,922 crore, signaling a strong push to accelerate industrial development and generate employment across the state. The approved projects, spanning multiple sectors including renewable energy, manufacturing, and infrastructure, are expected to create thousands of direct and indirect jobs. Officials noted that these investments will strengthen Andhra Pradesh’s position as a key investment hub in India while supporting its long-term goal of inclusive and sustainable economic growth.

According to the latest report by the National Housing Bank (NHB), residential property prices have witnessed an upward trend across most Indian cities, reflecting a combination of sustained demand, limited inventory, and easing credit conditions. Tier-1 and Tier-2 cities experienced the sharpest increases, while smaller towns saw moderate growth. Analysts attribute the rise to factors such as improved consumer confidence, declining mortgage rates, and continued investment interest from both end-users and institutional buyers.

The government recently held an inter-ministerial meeting to explore strategies for boosting India’s steel production and expanding export volumes. The deliberations focused on addressing supply-side bottlenecks, aligning with global demand trends, and ensuring the domestic steel industry remains competitive in an increasingly challenging trade environment. With India already the world’s second-largest steel producer, policymakers are keen to leverage its production capacity, raw material availability, and growing technological sophistication to strengthen export potential.

Maruti Suzuki Chairman R.C. Bhargava has emphasized the need for India to present a united front in addressing the challenges posed by rising U.S. tariffs on Indian goods. Speaking on the broader implications of protectionist trade policies, he underscored that fragmented or sector-specific responses may weaken India’s bargaining power in global negotiations. Bhargava argued that an integrated national approach is essential not only to safeguard exporters but also to sustain long-term industrial competitiveness.

The Indian rupee depreciated against the U.S. dollar on Thursday, pressured by sustained demand for the greenback, rising U.S. Treasury yields, and elevated crude oil prices. The local currency, which opened weaker, slipped further during intraday trade as foreign outflows and global risk aversion weighed on sentiment. While strong domestic macroeconomic indicators offered some cushion, traders expect the rupee to remain volatile in the near term as global uncertainties and dollar strength continue to dominate market dynamics.

Market Performance

The Goods and Services Tax (GST), one of India’s most transformative tax reforms, is again in the spotlight as industry leaders call for further rationalization. According to the chairman of ITC Ltd., a comprehensive overhaul of the GST framework could provide a major boost to India’s economic growth. He emphasized that reducing complexity, rationalizing tax rates, and streamlining compliance would not only benefit businesses but also expand the country’s tax base.