India’s white-collar job market closed FY26 on its strongest footing in three years, powered by a broad-based surge in non-IT hiring, rising demand for high-value talent, and a sharp premium for AI/ML roles, according to the latest Naukri JobSpeak report.

The JobSpeak Index climbed to 2,858 in March, marking a 9% year-on-year rise and helping the full fiscal year clock an 8% growth — four times higher than FY’25’s modest 2% expansion.

India’s ambition to become a high-income, technology-driven economy sits uneasily with a persistent truth: corporate India underinvests in research and development. The consequences are visible across sectors where domestic firms remain, at best, agile adapters of global technologies rather than originators. That is not a sustainable model.

India’s R&D spending hovers at about 0.6-0.7% of GDP, far below advanced economies and several emerging peers. More tellingly, the private sector accounts for a disproportionately small share, with the government still shouldering nearly two-thirds of the burden.

With the monetary policy committee (MPC) meetings underway and the Reserve Bank of India (RBI) governor Sanjay Malhotra’s policy statement on April 8th, concerns are running high on the stance the central bank will take.

This writer approached veteran banker Dinesh Kumar Khara, the former chairman of the State Bank of India and a highly regarded voice in the banking arena on what he felt would be on top of the agenda items for the MPC and what could be expected in the monetary policy?

India's GDP growth projection for financial year 2026-27 has been revised downward from 7 per cent to 7.7 per cent, as per India outlook report by BMI, a Fitch Solutions unit. GDP growth in the previous financial year was also downwardly revised from the earlier estimate of 7.8 per cent to 7.6 per cent, amid slowing economic momentum and the ongoing conflict between Israel and Iran.

The report flags economic momentum from the previous fiscal year, evidenced by the downturn in activity during Q1 2026 as a reason behind the cautious outlook.

Finance Minister Nirmala Sitharaman on Monday said the country has the fiscal space to support sectors impacted by the West Asia war, attributing the comfort to “decade-old fiscal prudence.” The minister also described the evolving economic challenges arising from the escalating conflict as something “moving beyond a regional concern to a systemic risk.”

Speaking at an event organised by the National Institute of Public Finance and Policy (NIPFP) here, she said sound public finance management strengthens the counter-cyclical capacity of fiscal policy, enabling governments to “lean against the wind” during downturns.

India’s agricultural exports – rice, fruits and vegetables to the Gulf region have commenced but high freight and time-consuming clearances has severely impacted the volume of shipment, exporters said.

In addition, the onward movement of perishable cargoes like fruits and vegetables through Dubai to Saudi Arabia, Qatar and Kuwait has been hampered because of the security situation.

There is no “unusual volatility” in prices of essential agricultural commodities due to the West Asia war, a senior government official said on Monday.

“We are keeping a close watch on the food security situation in the country and monitoring prices of food commodities while ensuring adequate supply,” said Anupam Mishra, Additional Secretary in the Department of Consumer Affairs, at a briefing.

On pulses, Mishra said the government currently holds a buffer stock of 2.8 million tonnes (MT), including 0.7 MT each of chana and tur, which can be deployed for market intervention if required.

Retail inflation in March is estimated to have edged higher, driven largely by rising fuel prices, economists said. Consumer Price Index (CPI) inflation is pegged at a 13-month high of 3.5% year-on-year for March, according to the median estimate of an FE poll of economists. Headline retail inflation stood at 3.2% in February and 2.75% in January.

If realised, this would mark the 14th consecutive month that inflation remains below the Reserve Bank of India’s (RBI) medium-term target of 4%.

ICICI Bank has revised India's projected GDP growth for the 2027 fiscal year to a range of 6.8-6.9 per cent from a previous estimate of 7.2 per cent. This adjustment follows significant disruptions in energy supply and manufacturing momentum triggered by the ongoing conflict.

According to a report by the bank, the economic outlook has shifted as global oil prices and supply chain blockades begin to weigh on domestic production.

The revised forecast of 6.8-6.9 per cent relies on the assumption that oil prices eventually settle around USD 85 per barrel as supply lines improve.

State governments are expected to raise between Rs 13.4 lakh crore and Rs 14 lakh crore in the current financial year FY2027, marking a growth of 5 to 9 per cent compared to the previous year, according to a report by ICRA.

The report noted that after accounting for redemptions of Rs 4.2 trillion in FY2027, the net State Government Securities (SGS) issuance is estimated to be in the range of Rs 9.2-9.7 trillion (1 trillion = 1 lakh crore).

India plans to roll out sovereign credit guarantees on loans worth $26.7 billion, aimed at supporting businesses, particularly small firms, affected by the Middle East crisis, two government sources said.

Businesses, such as textile and glass makers, have been hit by disruptions to supply from the Middle East due to the U.S.-Israeli war with Iran. At the same time India, the world’s third-largest oil importer, also faces the risk of rising inflation and slower growth.

The Centre will release the remaining Rs 17,500 crore compensation to state-run oil marketing companies (OMCs) in FY27, in seven tranches, as part of a Rs 30,000 crore support package to offset mounting LPG under-recoveries, the petroleum ministry has informed the parliamentary standing committee on petroleum and natural gas.

The ministry told the panel that under-recoveries on domestic LPG stood at Rs 41,267 crore as of March 31, 2025, reflecting the extent of financial stress on Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL).

Delivery of subsidies and welfare benefits through the direct benefit transfer (DBT) mechanism fell 5% to Rs 6.6 lakh crore in FY26 from Rs 6.9 lakh crore in FY25.

The DBT spending pattern also reveals a shift in government resource allocation, with a moderation of transfers under some welfare schemes while allocations toward housing and agriculture have risen.

Moody’s Ratings has slashed India’s economic growth estimates for the current fiscal to 6 per cent from 6.8 per cent earlier, saying the ongoing conflict in West Asia will moderate growth momentum and raise inflation risks.

In its credit opinion report on India, Moody’s said prolonged disruptions, particularly LPG shipments due to the conflict, would lead to near-term household shortages, higher fuel and transport costs, and spillovers to food inflation through India’s reliance on imported fertilisers.

India's services sector grew at its weakest pace in 14 months in March as the Middle East war dampened domestic demand, a survey showed on Monday, though overseas orders hit a near record while input cost pressures were at their most intense since mid-2022.

The final HSBC India Services Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 57.5 in March from February's 58.1, but was higher than a preliminary estimate of 57.2.

Toll collections grew 14% to a record Rs 82,900.16 crore in the just-ended fiscal year, underscoring addition of new toll roads, accelerated economic activity, and roll out of the new annual FASTag facility. Tolls worth Rs 72,930.83 crore were collected in FY25.

The volume of FASTag transactions rose 5.7% to nearly 4.45 billion in FY26 from 4.21 billion in the year before, showed National Electronic Toll Collection (NETC) data tracked by the National Payment Corporation of India (NPCI) and accessed by ET.

Europe's economic outlook remains fragile amid global trade tensions and geopolitical risks, which could have ripple effects on India's trade and sectoral competitiveness, according to a new report by EY

The EY European Economic Outlook (March 2026) notes that trade policy changes, tariffs, and geopolitical uncertainties continue to shape economic prospects in Europe, potentially affecting global trade flows and competition with countries like India.

The report highlights that the recently announced EU-India Free Trade Agreement (FTA) could have mixed sectoral implications for European industries while creating competitive pressure in some segments.

Trade and economic relations between India and its largest trading partner, China, seem poised to enter a new phase where both sides acknowledge a desire for strategic alignment and mutual ambition. China on Friday said it stands ready to work with India to fully leverage the role of bilateral economic and trade cooperation as a “ballast”, while the Indian side also is looking at making the two-way trade more balanced.

In a social media post regarding the meeting between Commerce and Industry Minister Piyush Goyal and China’s Minister of Commerce Wang Wentao during the just-concluded 14th Ministerial Conference of the World Trade Organization (WTO), the spokesperson of the Chinese embassy here said bilateral trade cooperation could be used “for jointly exerting influence on the world”.

China on Friday said it stands ready to work with India to fully leverage the role of bilateral economic and trade cooperation as a “ballast” while the Indian side is also looking at making the bilateral trade more balanced.

In a social media post regarding the meeting between Commerce and Industry Minister Piyush Goyal and China’s Minister of Commerce Wang Wentao during the just concluded 14th Ministerial Conference of the World Trade Organisation (WTO), the spokesperson of the Chinese Embassy talked of using trade cooperation for jointly exerting influence on the world.

Despite challenges of US tariffs, ongoing conflict in Ukraine and tensions in West Asia, India’s merchandise exports have closed 2025-26 on a positive note exhibiting growth over previous year, a senior official said Friday.

“Despite the war, we will be closing the year with positive growth. With the US tariffs, with so many disturbances all through the year. The Ukraine war is continuing, the West Asia war has started. For the whole of March we had the war, despite all of that, merchandise exports have been positive,” the official said without disclosing details.