Global slowdown could dampen demand for Indian exports, finance ministry report says
India's goods exports fell to $35.14 billion in June, down 9% from May, and remained nearly flat from a year earlier. The figure was the lowest since November's $32.11 billion, according to LSEG data.
"Despite global headwinds marked by trade tensions, geopolitical volatility, and external uncertainties, India's macroeconomic fundamentals have remained resilient," said the report released on Monday.
Even as the outlook for Indian economy is positive, Asia's third largest economy faces downside risks such as a global slowdown, particularly the U.S. economy shrinking 0.5% in January-March, impacting India's exports, it said.
The report also said that the country's inflation rate in 2025-26 could undershoot the Reserve Bank of India's (RBI) expectation of 3.7%. Retail inflation in June fell to over a six-year low of 2.1%.
RBI Governor Sanjay Malholtra last week said the central bank has "won the battle against inflation", but the war is ongoing as price stability remains the central goal.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
13 minutes ago
- Reuters
Toyota says it will build new car factory in Japan
TOKYO, Aug 7 (Reuters) - Toyota Motor (7203.T), opens new tab said on Thursday it would build a new vehicle factory in its namesake city in central Japan to start operations in the early 2030s. Production models have yet to be decided, the company said in a statement, along with its financial results for the April-to-June quarter. The announcement of a new domestic factory from the world's top-selling automaker comes even as Japanese car sales have been falling due to a shrinking population and declining ownership. The last assembly plant Toyota built in Japan was in 2012. It also comes as President Donald Trump has complained of a flood of Japanese cars flowing into the U.S. and contributing to a massive trade deficit for his country. Among Japanese automakers, Toyota is the top exporter to the U.S., although most of the vehicles it sells there are built locally. Toyota has had a long-standing policy of maintaining annual production capacity of 3 million vehicles in Japan, with roughly half bound for overseas markets.
Reuters
15 minutes ago
- Reuters
India's TCS to hike wages of 80% employees after five-month delay, company mail shows
BENGALURU, Aug 7 (Reuters) - India's Tata Consultancy Services ( opens new tab will raise salaries for 80% of its workforce, according to an internal email reviewed by Reuters, weeks after announcing layoffs affecting more than 12,000 employees. The annual wage hike, which was due in April, comes at a time when India's $283 billion IT industry is grappling with cautious client spending amid weak global demand, sticky inflation, and uncertainty around U.S. trade policy. TCS last month said clients delayed decisions and projects. "We are pleased to announce compensation revision for all eligible associates in grades up to C3A (assistant consultant) and equivalent, covering 80% of workforce," according to the mail to employees from chief human resource officer Milind Lakkad and CHRO designate Sudeep K on Wednesday. Employees, ranging from trainees with a few months of experience, to assistant consultants who have worked for more than a decade, will be eligible for the wage revision. However, the mail did not share any details about the revisions for senior-level staff that form the rest 20% of the workforce. "We can confirm that we will be issuing wage hikes to around 80% of our employees effective 1st September 2025," the Tata Group company said in an email to Reuters, but did not give other details. The April annual hikes were delayed after the Mumbai-based company cited uncertain business environment. In June, the company's attrition level reaching a two-year high of 13.8%.
Reuters
15 minutes ago
- Reuters
China steel exports rise in July despite protectionist backlash
BEIJING, Aug 7 (Reuters) - China's steel exports climbed in July, continuing a record-breaking run despite growing trade barriers being thrown up by countries concerned about a flood of Chinese exports. Steel exports in July rose 1.7% from June to 9.84 million metric tons, taking total exports so far this year to 67.98 million tons, data from the General Administration of Customs showed on Thursday. The year-to-date tally is the highest level in records going back to 1990. The record steel exports from the world's largest producer have sparked a protectionist backlash globally, with almost 40 countries starting up anti-dumping investigations since January last year. Top trade partners Vietnam and South Korea have imposed tariffs, arguing that their domestic manufacturers are hurt by cheap Chinese steel. In response, Chinese steelmakers have been turning to exporting semi-finished products, which face fewer tariffs. Imports of the main steelmaking ingredient iron ore slipped 1.3% to 104.62 million tonnes in July, the data also showed, as higher prices hit demand. Iron ore prices rose nearly 7% in July on bets they would be tolerated after Beijing's pledge to crack down on price wars sparked expectations of a fresh wave of supply-side reform in the steel sector, which has been plagued by overproduction. But higher prices dampened appetite among some cost-sensitive steelmakers that suffered losses during 2023 and 2024 amid faltering demand, analysts said. Imports also slowed as miners sent fewer shipments after a rush in June to hit quarterly targets. Some cargoes were also delayed because of Typhoon Wipha, according to Cao Ying, an analyst at broker SDIC Futures. Still, July marks the third month so far this year that China's monthly iron ore imports stayed above 100 million tons. July's imports were down from a six-month high of 105.95 million tons in June, but up from 102.81 million tons in the same month in 2024. "Despite a monthly decline, iron ore imports in July stayed high amid the relatively high hot metal output driven by improved steel profitability," said Chu Xinli, an analyst at China Futures. In the first seven months of 2025, China's iron ore imports totalled 696.57 million tons, down 2.3% from the same period last year.
