This Week In Economics (1 – 7 April)
Welcome to another edition of This Week In Economics, where I compile all the biggest economic news of the week in context of India.
Note: There is no need to make notes out of it, you can simply read the headlines and the content once in a while, that’ll be more than enough for most exams.
Manufacturing PMI Recovers in April
India’s HSBC Manufacturing PMI rose to 55.9 in April 2026 from 53.9 in March, signalling a stronger improvement in factory conditions. Output and new orders expanded at faster rates, supported by improved demand, capacity expansion, and technology investment. New export orders grew at their fastest pace in nine months, and employment increased at a 10-month high.
Coal Gasification Scheme
The Union Cabinet was set to approve a ₹37,500 crore incentive scheme to promote coal gasification projects, a major energy policy initiative aimed at strengthening domestic energy production and reducing import dependence.
Steel Sector Showing Strong Demand
India’s finished steel consumption rose 8.1 per cent in April 2026, while prices of long and flat steel products recovered amid stronger demand conditions. This signals healthy infrastructure and construction-led activity.
India–South Korea CEPA Review
India and South Korea are set to review their CEPA (Comprehensive Economic Partnership Agreement) on May 25, amid concerns over a widening trade deficit, with New Delhi pushing for a modernised pact and more balanced trade ties.
Energy Storage Policy Urgency
S&P Global said India requires a comprehensive energy storage policy to tackle supply disruptions, amid high dependence on crude oil, LNG, and LPG imports. This has gained urgency due to West Asia conflict-related supply risks.
OECD Growth Projections
The OECD projected India’s real GDP to grow by 6.7% in FY 2025–26, 6.2% in 2026–27, and 6.4% in 2027–28. Higher US tariffs are expected to weigh on exports, but private consumption will be supported by rising real incomes as inflation remains low.
Goldman Sachs Upgrades India GDP Forecast
Goldman Sachs lifted its forecast for India’s real GDP growth in 2026 by 20 basis points to 6.9% year-on-year, following a newly announced interim US–India trade agreement that reduced reciprocal tariffs on Indian goods from 25% to 18%.
IIP Data
India’s IIP growth rate for March 2026 stood at 4.1%, a dip from the previous month but higher than 3.9% in March 2025. The dip was attributed to weakness in several manufacturing sectors amid rising input costs and supply disruptions due to the West Asia conflict.
NSO Enterprise Survey Findings
NSO’s ASUSE 2025 survey showed Uttar Pradesh and West Bengal dominating in scale of enterprises, while Maharashtra and Tamil Nadu led in productivity and value creation, highlighting the continuing regional economic divergence in India’s industrial landscape.
Rural Economy & El Niño Watch
Concerns were raised about El Niño’s potential impact on the rural economy, though analysts suggested the impact may be limited despite weather risks. Rural consumption remains a key driver of India’s overall demand story in 2026.
Ciao, until next week’s edition.
