News
India’s Economic Activity, Inflation Remain Stable Despite External Risks: Finance Ministry
The Finance Ministry said resilient domestic demand, easing cost pressures and comfortable foreign exchange reserves are supporting the economy despite global uncertainties. India’s economic activity, inflation and external position have remained relatively stable despite risks from the global economic environment, according to the Finance Ministry’s Monthly Economic Review for August 2026.
The report said domestic demand continues to support economic activity, even as the pace of expansion has moderated in some areas. It added that easing cost pressures and firm demand conditions are expected to support growth in the coming months.
The review was released on August 31, shortly after India reported 7.8% economic growth in the first quarter of FY27. The growth was higher than market expectations and has led economists to raise their full-year growth forecasts to around 7% from earlier estimates of 6.7-6.8%.
Manufacturing Activity Remains Resilient
The Finance Ministry said India’s industrial sector has remained resilient despite a challenging external environment.
Manufacturing activity continues to expand, while domestic technological capabilities are gradually strengthening. The report said continued investment in research and development, skills, supply-chain resilience and supporting infrastructure will be important for improving industrial competitiveness.
These measures could also help Indian businesses respond better to disruptions in global supply chains.
Food Inflation Remains a Risk
The outlook for food inflation and agricultural production remains an area of concern.
The report highlighted the potential impact of an intensifying El Niño, which is expected to peak towards the end of 2026. Changes in weather conditions could affect crop yields during the flowering and grain-formation stages and influence soil moisture and winter temperatures required for the upcoming Rabi season.
Wheat and mustard could be among the crops affected by these conditions.
Kharif sowing has gained momentum following stronger monsoon rains across several parts of the country, although the total acreage remains below last year’s level.
Higher food inflation could also affect household spending. If households have to spend a larger portion of their disposable income on food, spending on non-essential goods and services could come under pressure.
External Sector Has Buffers
India’s external sector remains relatively well positioned to manage changing global trade conditions and volatility in international financial markets, according to the report.
The current account deficit widened marginally to $3.1 billion in the first quarter of FY27 from $2.9 billion in the same period a year earlier.
However, the Finance Ministry said a recovery in capital flows, a resilient services surplus and comfortable foreign exchange reserves provide buffers against external pressures.
India’s participation in international groupings such as BRICS could also support export diversification and improve access to overseas markets. The government is focusing on areas such as intra-BRICS trade, greater participation of small and medium enterprises in international markets and more resilient global value chains.
Rupee and Global Bond Yields Under Watch
The Finance Ministry is also monitoring developments in global sovereign bond markets.
A rise in global bond yields could affect Indian financial markets in different ways. Indian bond yields could rise alongside global yields, or if domestic yields remain relatively stable, the narrowing difference between Indian and global yields could put pressure on the rupee.
The rupee has depreciated by around 6% since the beginning of 2026.
The government is also monitoring global demand for investment capital as developed economies seek funds to finance fiscal spending and refinance existing debt. Changes in the availability and cost of global capital could influence the level of current account deficits that emerging economies can sustainably finance.
Global Inflation Could Affect India
Another area being monitored is the possibility of higher global inflation.
The report pointed to the potential impact of higher prices for electronic goods and food commodities. Food prices could be affected by dry weather conditions and supply-chain disruptions.
Any increase in global inflation could influence the monetary policy decisions of major central banks. For India, this could have implications for domestic interest rates, monetary policy and the cost of financing the current account deficit.
Outlook Remains Cautiously Positive
The Finance Ministry’s assessment points to an economy supported by domestic demand, resilient manufacturing activity and relatively strong external buffers.
However, risks remain from global interest rates, capital flows, currency movements, commodity prices and weather conditions.
For households and businesses, the trajectory of food inflation and interest rates will remain important, while investors will continue to watch the rupee, global bond yields and foreign capital flows.
The ministry expects easing cost pressures and steady domestic demand to support economic activity, but global developments are likely to remain a key source of uncertainty for India’s economic outlook.
Source: Moneycontrol
News
World Investor Week 2026: What SEBI and Mutual Fund Companies Are Doing to Make Investing Simpler
From college campuses to awareness campaigns, here’s how the financial industry is trying to help Indians make better money decisions.
Investing can feel confusing when you are just starting out. Should you invest in mutual funds or stocks? How do you know if an investment tip is genuine? And what should you do when the market falls?
This World Investor Week, the focus is on helping people find answers to these questions.
Observed in India from October 5 to 11, World Investor Week 2026 is an initiative aimed at improving investor awareness and protecting people from financial risks. This year’s campaign carries the message “Samajh Se Investing Simple” – making investing simpler through better understanding.
From new awareness campaigns to programmes in colleges and investor education initiatives, here are some of the efforts underway.
1. SEBI’s new campaign wants to make investing easier to understand
On October 5, the Securities and Exchange Board of India (SEBI) launched “Samajh Se Investing Simple” under Project Jagrook.
The campaign aims to help people understand different investment options, the risks involved and how to make informed financial decisions. It also focuses on identifying genuine investment platforms and avoiding financial fraud.
SEBI has also introduced the MUST initiative Mentoring of University/College Students by Trainers to take financial education to campuses. Under this programme, trained faculty members, staff and senior students can help others learn about investing and securities markets.
The regulator has also announced an official WhatsApp channel for sharing investor-awareness information.
Why it matters: You don’t need to become a stock market expert overnight. But understanding the basics, knowing the risks and spotting suspicious investment offers can help you make better decisions with your money.
2. AMFI and Panjab University are bringing financial education to campuses
The Association of Mutual Funds in India (AMFI) has partnered with Panjab University to promote financial literacy and create opportunities for students interested in becoming mutual fund distributors.
The partnership, announced on October 5, covers Punjab, Haryana, Himachal Pradesh and Chandigarh. It will use a Train the Trainer model, where selected faculty members receive training to conduct financial literacy programmes.
Interested students will also be encouraged to pursue the relevant National Institute of Securities Markets (NISM) certification and obtain an AMFI Registration Number (ARN), which is required to distribute mutual funds.
Why it matters: Learning about money shouldn’t begin only after you start earning. Introducing financial education in colleges can help young adults understand investing before they make their first big financial decisions. The partnership also creates a possible career pathway for students interested in mutual fund distribution.
3. PPFAS Mutual Fund is sharing investor education resources
PPFAS Mutual Fund has created a dedicated World Investor Week 2026 page featuring educational videos and links to its investor lessons.
The idea is to give investors access to learning resources that can help them build a better understanding of investing.
Why it matters: If you’re new to investing, educational resources can help you learn at your own pace, understand unfamiliar terms and ask better questions before putting your money into an investment.
4. Investor awareness is also reaching beyond financial classrooms
SEBI’s World Investor Week programme includes investor-awareness activities, educational resources, quizzes and contests. The regulator’s message for investors also highlights an important lesson: market ups and downs are normal, and investors should avoid making rushed decisions in response to volatility.
SEBI Chairman Tuhin Kanta Pandey also addressed the AMFI-Pinkathon Investor Awareness Programme on October 8, under the theme “Every Step Counts – Towards Financial Well-being.”
These initiatives bring investor awareness into different settings, helping make financial education more visible and accessible.
What does this mean for you?
World Investor Week is a reminder that investing isn’t just about finding the next stock or mutual fund that could deliver high returns. It’s also about understanding where your money is going and what risks you’re taking.
Here are a few simple things you can do:
- Understand before you invest: Learn how a product works and what risks come with it.
- Don’t blindly follow tips: Be cautious of guaranteed-return promises and investment advice from unverified sources.
- Stay calm when markets fall: Short-term market movements are normal. Avoid making rushed decisions out of fear.
- Check who you’re dealing with: Verify investment platforms, advisers and payment requests before sharing money or personal details.
News
World Egg Day: Why Your Everyday Protein Could Cost More This Winter
From rising poultry feed costs to growing demand for maize, here’s how changes in the energy and agriculture sectors could affect your grocery budget.
Eggs are among the simplest ways to add protein to your daily diet without spending too much. But when their prices rise, even a small increase can add up for households that buy them regularly.
As India celebrates World Egg Day on October 9, 2026, egg prices are also drawing attention to a bigger question: how can changes in industries far removed from our kitchens affect everyday expenses?
A September 2026 report by India Today, citing a LocalCircles survey of more than 67,000 consumer responses across 287 districts, found that 62% of respondents reported egg price increases of 10% to 50% or more over the previous six months.
So, what is driving these increases, and what could they mean for your wallet?
Why are egg prices rising?
1. The maize and ethanol connection
One of the key ingredients in poultry feed is maize, which provides energy to chickens. However, maize is also used to produce ethanol, a biofuel blended with petrol in India.
As demand for ethanol grows, more maize may be directed towards fuel production. This creates competition between industries that need the same agricultural commodity, including poultry farmers who depend on it to feed their birds.
When maize becomes more expensive, the cost of poultry feed can rise. Farmers may then pass on some of these additional expenses through higher egg prices.
2. Rising poultry feed costs
Maize is not the only ingredient used in poultry feed. Soybean meal and other nutrients are also important for poultry health and egg production.
A September 2026 report by India Today noted that poultry feed costs had risen by around 15% year-on-year in July. Higher input costs can squeeze farmers’ margins and contribute to higher prices for consumers.
Weather conditions can add to the pressure. Heat stress can affect poultry productivity, while disease outbreaks and supply disruptions can increase production costs.
3. Could winter make eggs more expensive?
Egg consumption often increases during colder months. If demand rises faster than supply, prices may face additional pressure.
However, further price increases are not guaranteed. Actual prices will depend on feed costs, poultry production, local supply and seasonal demand.
What Does This Mean For Your Monthly Budget?
A small increase in the price of an egg may not seem significant, but regular purchases can make a difference over a month.
For example, if you eat two eggs daily, you consume around 60 eggs in 30 days. If the price per egg rises by ₹2, that means an additional ₹120 a month. For a household consuming four eggs daily, the extra expense would be ₹240.
These are illustrative calculations, not estimates of the current price increase.
The Bigger Picture
India’s ethanol-blending programme aims to reduce dependence on conventional petrol. However, when crops such as maize are used for both fuel and animal feed, changes in demand can affect production costs across industries.
Ethanol production is not the only reason egg prices change. Weather, feed costs, supply and consumer demand all play a role.
This World Egg Day, the takeaway is simple: everyday expenses are connected to the wider economy. Understanding these connections can help you make sense of rising grocery bills and manage your household budget better.
News
How the Russia-Ukraine War Is Affecting Food Prices in India
India’s food prices could face fresh pressure as the ongoing Russia-Ukraine conflict disrupts supplies of yellow peas and sunflower oil. Both commodities are important to India’s food market, and any increase in their import costs can affect prices across the supply chain.
According to a report in The Economic Times, uncertainty around shipments from the Black Sea region has raised concerns about the availability and cost of these products in India.
Why Are Yellow Peas and Sunflower Oil in Focus?
Russia and Ukraine are important suppliers of agricultural commodities to global markets. The conflict has affected trade routes, shipping schedules and the movement of goods from the region.
Sunflower oil is particularly relevant for India, which depends heavily on imports to meet its edible oil requirements. When supplies become uncertain or shipments are delayed, importers may have to pay more to source the commodity from alternative markets.
Yellow peas, meanwhile, are used in food products and as a source of protein. Changes in their availability and import costs can affect traders, food manufacturers and businesses that use them as ingredients.
How Can the Conflict Affect Prices in India?
The impact is not limited to the cost of importing a commodity. Higher shipping costs, supply delays and the need to find alternative suppliers can all add to the final price.
If importers pay more to bring these products into India, some of that increase could eventually be passed on to wholesalers, retailers and consumers. However, the extent of the impact will depend on how long supply disruptions continue, the availability of alternatives and domestic market conditions.
For sunflower oil, higher prices could put pressure on household grocery budgets. For yellow peas, the impact could be felt through the cost of the commodity itself and products that use it.
Will Your Grocery Bill Go Up?
For households, the key concern is whether higher import costs translate into more expensive everyday essentials.
Edible oil is a regular kitchen purchase, so even a small increase in its price can add to monthly grocery expenses over time. Consumers may also notice price changes in packaged foods and other products that use imported agricultural ingredients.
However, a rise in global prices does not automatically mean an immediate or equal increase in retail prices across India. Existing inventories, domestic supply, taxes and competition between sellers can influence how quickly international price changes reach consumers.
From Global Markets to Your Kitchen
The Russia-Ukraine conflict is another reminder of how global events can affect household budgets in India. When a country relies on imports for essential commodities, disruptions thousands of kilometres away can eventually influence prices at the local grocery store.
For now, the extent of the impact on Indian consumers will depend on how supplies, shipping and global commodity prices evolve.
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