Anoushka Sawhney

Youth unemployment in India remains a significant concern, with joblessness rates increasing. Female youth unemployment has sharply risen to 19.6 percent, indicating a growing disparity. The gender gap in labour force participation has also widened considerably across many states. Twelve states and union territories are reporting unemployment rates above the national average. Overall labour force participation has slipped to 40.7 percent as female engagement declines.

The MSME ministry is set to announce new regulations for small businesses next month. These amendments focus on improving invoice financing through the Trade Receivables Discounting System, ultimately aiming to bolster cost efficiency and global competitiveness. As Parliament has recently addressed issues of delayed payments, digital platforms will play a crucial role in overseeing the effective implementation of this law.

Parliament's Monsoon Session concluded with sharply lower productivity in both Houses. Lok Sabha functioned for only fifteen percent of its scheduled time. Rajya Sabha worked for thirty-three percent of its allocated parliamentary time. Nine of eleven Bills passed by Lok Sabha saw no MP speaking. This indicates a concerning trend in legislative functioning and debate.

Millet prices are increasing as farmers plant less of these nutritious grains. Lower planting this year could further tighten supplies and raise food costs. Jowar prices saw an 11% year-on-year increase in July, while small millets rose over 21%. Inflation in ready-made food products also climbed to nine percent. Wholesale prices for jowar and ragi indicate higher input costs for manufacturers.

Over the years, the economy has evolved dramatically—from rising incomes and a larger global footprint to deeper integration with the world economy and a shift towards services. India has come a long way, but significant challenges remain. Anoushka Sawhney takes a look.

Millet prices are increasing as farmers plant less of these nutritious grains. Lower planting this year could further tighten supplies and raise food costs.

India's economy likely grew over seven percent in the first quarter of fiscal year twenty twenty seven. Resilient consumption and exports supported this robust economic expansion during the period. Government capital expenditure also played a significant role in driving overall economic activity. High frequency indicators suggest healthy domestic volume growth across sectors. Economists anticipate a slight moderation in growth during subsequent quarters.

Indias economic growth likely held above 7% in the first quarter of FY27, as resilient consumption and exports coupled with robust government capex defied supply chain disruptions and inflated commodity prices triggered by the Iran war.

Ready-made food prices are likely to stay high due to increased input and packaging expenses. Inflation in these products accelerated to nine percent year-on-year in July. Key commodity prices like tomatoes and edible oil have seen significant year-on-year increases. Higher costs for spices, herbs, and seeds are also contributing to price pressures. These elevated expenses are gradually being passed on to consumers.

Indian outward investment remains elevated, reaching forty-five percent of last year's total. Financial and business services accounted for nearly half of these outflows. The United States, Singapore, and Cayman Islands were the primary destinations. Central bank data released last week showed these significant investment trends. This data reflects the current patterns of Indian entities investing abroad.