News on Indian Economy
The official figures show that merchandise exports in FY26 stood at US$441.78 billion, while services exports were estimated at US$418.31 billion. On the import side, total goods and services imports rose to US$979.40 billion, leaving India with an overall trade deficit of US$119.30 billion, wider than the US$94.66 billion gap recorded in FY25.
The latest figures suggest that India’s trade relationship with China is growing in scale, but in a highly uneven manner. Reports citing the data said India’s exports to China rose to roughly US$19.47 billion, while imports from China climbed to around US$131.63 billion during the fiscal year.
The growth is being driven by three reinforcing trends: cheap mobile data, rising smartphone penetration, and heavier digital-content consumption. India’s telecom base remains one of the biggest structural supports for OTT expansion.
The domestic market is also expanding in value. According to data cited by GJEPC from the De Beers study, India’s natural diamond jewellery market was officially estimated at ₹785 billion in 2024 and is projected to reach ₹1,520 billion by 2030, implying a 12% compound annual growth rate. The same study says the addressable market already includes 67 million women across SEC A and B households in Tier 1 to Tier 5 cities, with average spending per diamond piece at roughly ₹1.4 lakh.
The pitch for a new scheme comes after the first smartphone PLI delivered results well above its original targets. The Ministry of Electronics and IT said on April 1, 2026 that the PLI scheme for Large Scale Electronics Manufacturing (LSEM) had achieved ₹17,519 crore in investment against a target of ₹7,000 crore, ₹11,01,813 crore in production against a target of ₹8,12,550 crore, and ₹6,20,974 crore in exports against a target of ₹4,87,530 crore by February 2026.
EVs accounted for 21% of its 2025 India sales and 26% of its Q1 2026 sales, while the company reported more than 70% share of India’s luxury EV segment in the first quarter. This suggests that the future expansion of the luxury market in India may be increasingly tied to electrification, not just conventional premium sedans and SUVs.
India’s mutual fund industry closed FY26 on a stronger footing, with total assets under management
The broader budget data supports the scale of that expansion. The Union Budget’s Budget at a Glance for 2026–27 pegs total capital expenditure at ₹12,21,821 crore, up from a revised estimate of ₹10,95,755 crore in 2025–26. Separately, the Economic Survey 2025–26 noted that the Centre’s capital outlay had already risen from ₹5.92 lakh crore in FY22 to a budgeted ₹11.21 lakh crore for FY26, and argued that infrastructure spending carries a medium-term multiplier of roughly 2.5 to 3.5 times GDP.
The report said the industry attracted an estimated US$ 13–15 billion in investments between 2020 and 2024, with foreign institutional investors contributing nearly 80% of total capital inflows. That trend is expected to continue, with announced projects worth US$ 60–70 billion lined up over the next five years, largely led by hyperscalers and joint ventures seeking to expand capacity in India.
The initiative comes as LIC continues to deepen its digital push across India’s vast insurance market. With more than 260 million policies and one of the widest insurance footprints in the country, LIC is positioning its digital platforms as a key part of improving service efficiency, expanding reach, and staying competitive in an evolving life insurance landscape.
