economic resilience

The government has prematurely ended KV Subramanian's term as India's executive director at the IMF, effective April 30, 2025, without providing an official reason. Subramanian, who began his tenure in November 2022, had previously served as the government's chief economic advisor.

India and Pakistan, once sharing economic fates, now exhibit a stark contrast in foreign exchange reserves. India's reserves soared to over $688 billion due to liberalization, a booming service sector, and consistent policies. Pakistan's reserves struggle at $15 billion, hampered by political instability, reliance on external aid, and limited export diversification.

Following the recent terror attack in Jammu and Kashmir, India is preparing to urge international financial institutions like the IMF and World Bank to reassess their financial aid to Pakistan. This diplomatic push comes before a crucial IMF meeting where Pakistan's financial arrangements will be discussed. India aims to highlight concerns about Pakistan's role in fueling terrorism.

India is escalating its efforts against Pakistan, urging international bodies like the IMF to re-evaluate financial aid due to alleged support for terrorism. New Delhi seeks a review of IMF loans, including a recent $1.3 billion climate resilience loan, and is engaging with the World Bank and Asian Development Bank.

The Indian government abruptly removed Krishnamurthy Subramanian from the IMF board, six months before his term ended, amidst disagreements over IMF datasets and allegations of impropriety related to his book promotion. This decision precedes a crucial IMF meeting regarding a $1.3 billion climate resilience loan to Pakistan, a move India opposes.

Foreign investors injected Rs 17,425 crore into Indian equities during April 21-25, driven by positive global cues like stable US markets and easing trade tensions. India's strong economic fundamentals, moderating inflation, and promising monsoon forecasts further boosted investor confidence. Despite earlier outflows this month, renewed interest stems from a weakening US dollar and India's resilient growth prospects.

Foreign Portfolio Investors (FPIs) have returned to Indian equities, injecting nearly Rs 8,500 crore last week, signaling renewed confidence in India's economic resilience. This inflow comes amidst expectations of subdued growth in the U.S. and China, while India is projected to grow at 6 per cent, attracting FPI interest in domestic consumption-led sectors.

Sebi Chairman Tuhin Kanta Pandey advises Indian retail investors to remain invested for the long term, despite global economic challenges and market volatility. He highlights India's economic resilience, citing consistent growth and manageable deficits. Pandey also cautions against speculative trading and emphasizes the importance of financial literacy and informed investment decisions.

Despite global economic headwinds like falling crude oil prices, India's economy demonstrates remarkable resilience, according to a Motilal Oswal analysis. Improved fiscal health and strong domestic demand are key factors. While challenges like IT slowdown and potential currency wars exist, their impact on India's growth may be limited.

Asian stock markets experienced gains following Wall Street's rebound, despite ongoing concerns about the economic impact of US tariffs. Japan's Nikkei 225 rose after the Bank of Japan held interest rates steady, while investors await the US jobs report for further economic insights.

Finance secretary Ajay Seth emphasized India's economic resilience and projected growth of 6.3-6.8%, highlighting healthy tax collections. He stressed the importance of fiscal consolidation, urging states to prioritize capital expenditure over revenue deficits. Seth also noted the need for a more objective World Governance Index and a global shift towards energy security over immediate energy transition goals.

US job openings declined in March, signaling economic uncertainty linked to President Trump's trade policies, despite a pause on tariffs for most countries except China. The Labor Department reported 7.2 million positions, below expectations and a recent low. While voluntary resignations suggest worker confidence, economists caution that stability may be temporary.

India's direct tax collections, in gross terms, have witnessed a robust growth of 15.59 per cent year-on-year, reaching Rs 27.02 lakh crore in the financial year 2024-25, data released by the Central Board of Direct Taxes (CBDT) showed. In 2023-24, it was Rs 23.38 lakh crore.

Despite India's rapid economic growth and resilience, global credit rating agencies remain cautious, owing to concerns about high fiscal deficits and debt levels. Some economists express pessimism, but India's strengths suggest continued resilience

For many across the country, economic struggles, political malaise and the fear of armed conflict with India now feel like parts of the same burden

Justin Trudeau’s political brand, once associated with youthful optimism and progressive momentum, had become a liability by early 2025. After nearly a decade as Prime Minister, Trudeau faced plummeting approval ratings, fueled by high food prices, a worsening housing crisis, and lingering ethics scandals. Internal dissent within the Liberal Party reached a breaking point, culminating in Trudeau’s resignation in January.

President Xi Jinping has criticized tariffs. He said that tariffs undermine the global economic order. This statement comes amid tensions between China and the United States. Earlier, Donald Trump imposed tariffs on Chinese imports. China retaliated with duties on American goods. China opposes deals at its expense. Foreign Minister Wang Yi urged the UK and EU to defend multilateral trade.

Stock market today: Indian equity benchmark indices, Nifty50 and BSE Sensex, rallied strongly in trade on Friday, the first trading day of the month before ending somewhat muted. While Nifty50 rose over 250 points to cross 24,550, BSE Sensex was above 81,100 intraday.

Amidst escalating India-Pakistan tensions, Assam's Chief Minister Himanta Biswa Sarma has voiced his support for the Balochistan movement, highlighting their struggle against the Pakistani government. He emphasized the Baloch people's pursuit of autonomy and rights, citing historical grievances and the 2006 killing of Nawab Akbar Bugti as catalysts for their ongoing fight for self-determination and justice against exploitation.