India eyes more FDI, speed up divestment, asset monetisation as economy faces external risks
GST
Dated:- 9-6-2026
PTI
New Delhi, Jun 9 (PTI) The government plans to push ahead with reforms, including further measures to boost foreign investment, speeding up divestment and asset monetisation, as it seeks to preserve India's growth momentum in the face of rising fuel and fertiliser import costs triggered by the West Asia crisis, government sources said on Tuesday.
They said that the country's GDP growth momentum remains intact, with domestic consumption holding up.
“Growth is not under stress, but there are external challenges… Quarter after quarter, growth is showing momentum. Domestic economy is doing good, consumptions are not coming down…,” the sources said.
The stress that India is facing currently in terms of high oil and fertiliser import bills due to the closure of the Strait of Hormuz are “not just the normal kind of uncertainties”, they said.
Sou
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adwinds from rising fuel and fertiliser import costs linked to the West Asia crisis, but growth momentum remains intact as domestic consumption stays resilient.
Sources said the government sees no immediate need for additional borrowing or supplementary spending approvals in the upcoming monsoon session of Parliament, with the FY27 Budget having already factored in uncertainties stemming from global trade tensions and tariff-related disruptions.
The growth momentum seen in the January-March quarter is continuing in the first quarter of FY27, sources said, adding that there has been no adverse impact on remittance inflows so far.
“We have no indications that remittances have come down so far,” sources added.
India's economy grew at a higher pace of 7.7 per cent during 2025-26 as compared to 7.1 per cent in 2024-25, according to government data released on Friday.
The same day RBI slashed its FY27 GDP growth forecast to 6.6 per cent from 6.9 per cent, citing rising ri
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budgeted Rs 80,000 crore under this head exceeds the budget estimate,” a source said.
The source added that the government's planned sale of its stake in IDBI Bank is expected to move forward.
Officials said a reassessment of macroeconomic conditions would be undertaken in July once April-June quarter economic data and the impact of the monsoon season become clearer.
High-frequency indicators continue to point to economic resilience, sources said, citing robust GST collections, improving private-sector investment trends and recent industry data showing a pickup in capital expenditure plans.
The government also intends to continue its reform agenda, with additional measures to attract foreign direct investment under consideration. Sources said there is no proposal to impose restrictions on capital outflows.
However, pressure is building on the subsidy front as global fertiliser prices rise.
According to sources, the fertiliser ministry has sought a 100 per cent
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