India’s economic landscape shows mixed signals. While festive gold demand has boosted imports, contributing to a rising current account deficit, projected GDP growth of 7.2% for FY25 reflects strong domestic fundamentals. Rising CPI inflation, driven by food costs, and a shift in tax collections from middle-income earners indicate evolving economic dynamics.
India economy updates
- India’s gold imports surged by 21.78% to $27 billion in the first half of FY 2024-25, driven by strong festive season demand, according to government data. The rise marks an increase from $22.25 billion in the same period last year, impacting the current account deficit.
- India’s real GDP is projected to grow by 7.2% in FY25, supported by rising consumption and investment, according to Finance Minister Nirmala Sitharaman. She highlighted strong fundamentals, including robust government spending and business optimism, at the recent International Monetary and Financial Committee meeting.
- Despite an increase in tax payments by middle-income earners, their share of India’s total personal tax collections has decreased over the past five years due to incentives and deductions. Contributions from those with a tax liability up to ₹1,50,000 fell from 19.2% in 2020 to 13.3% in 2024, while wealthier taxpayers’ share has grown.
- India plans to import coking coal from Mongolia via the Russian Trans-Siberian Railways to Vladivostok, from where it will be shipped to Chennai. This move aims to secure long-term supply contracts for domestic steelmakers and enhance trade connections with Russia.
- India’s consumer price index (CPI) inflation reached a nine-month high of 5.49% in September, up from 3.65% in August, primarily driven by rising food prices. While the prices of cereals, meat, and pulses decreased, there were notable increases in the costs of milk, fruits, and vegetables.
India stock market updates
In October, India’s markets faced significant challenges, with the BSE SENSEX dropping 5.79% to ₹79,389.06 and the NIFTY 50 falling 6.17% to ₹24,205.35. The declines were driven by global economic uncertainty and inflationary pressures, negatively impacting investor sentiment across key indices.
- Dr. Reddy’s Laboratories has introduced BixiBat (Elobixibat) in India as a new treatment for chronic constipation. This drug improves bowel movements by blocking bile acid reabsorption, offering a promising option for patients seeking relief.
- Tata Consumer Products has appointed Partha Biswas as President and Head of its Ready to Drink (RTD) business, previously known as Nourishco Beverages Ltd. With 20 years of experience in category leadership and business strategy, Partha aims to strengthen and expand the company’s growth initiatives in the beverage sector.
- A Kenyan court has suspended a $736 million deal between Adani Energy Solutions and the state-owned Kenya Electrical Transmission Company (KETRACO) to construct power infrastructure. The Law Society of Kenya challenged the agreement, arguing it lacked public participation and was constitutionally flawed, prompting the court to halt the project until further review.
- Ambuja Cement is acquiring a 46.8% stake in Orient Cement for ₹8,100 crore, with plans to make an open offer for an additional 26% stake. This deal aims to boost Ambuja’s cement capacity by 30 MTPA, helping the company reach a total capacity of 100 MTPA by FY25 and enhance its market share.
- Sun Pharma has entered into a global agreement with Philogen to exclusively commercialize Fibromun, an innovative anti-cancer immunotherapy being tested for soft tissue sarcoma and glioblastoma. Under the deal, Philogen will handle ongoing trials and manufacturing, while Sun Pharma will manage marketing, sharing post-commercialization profits in a ratio of 55% for Sun Pharma and 45% for Philogen.
India’s top gainer and top loser stocks for October
Summary
Amid economic headwinds and inflationary pressures, India’s stock markets saw declines in October. However, corporate activities, such as Sun Pharma’s global partnership and Ambuja Cement’s acquisition plans, highlight ongoing growth ambitions, particularly in the healthcare and infrastructure sectors.
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