Anup Roy

A weak monsoon is emerging as India’s next inflation risk, with a developing El Niño threatening to curb rainfall and push up food prices just as an easing oil relieves broader price pressures.

India’s growth prospects have brightened following the recent de-esclation in the Middle East conflict, as lower oil prices reduced risks to inflation and the external balance, said the government’s monthly report.

India will continue to build new crude oil refineries in order to ensure supply chain security even as Western nations shut processing units, Prime Minister Narendra Modi said.

India’s CG Power & Industrial Solutions Ltd.’s new semiconductor unit has started production with an annual capacity of 200 million chips, Prime Minister Narendra Modi said Saturday, marking a fresh milestone in the country’s goal to build a domestic chip industry and gain a foothold in the global supply chain.

Mumbai’s wettest start to July in decades killed at least 13 people in the city and its adjoining areas and caused widespread disruption for millions of residents, raising questions about the quality of infrastructure in India’s financial hub.

Foreign direct investment in India surged in 2025, driven largely by Alphabet Inc.’s data center project, though a decline in greenfield investments signaled a weaker investment outlook, according to the United Nations’ trade agency.

Over the past two years, India’s central bank built one of the world’s largest bearish dollar bets to support a persistently weak rupee. It now faces the challenge of unwinding that position without destabilizing the currency market.

RBI faces a challenge unwinding its large bearish dollar bets. The central bank has begun trimming its massive short dollar forward position.

India’s inflation accelerated last month, rising above the Reserve Bank of India’s target for the first time in nearly a year and a half and keeping policymakers on guard.

Consumer price index rose to 4.38% in June from a year earlier , exceeding the RBI’s 4% target but remaining within its 2%-6% tolerance band.