Economy

Union Home and Cooperation Minister Amit Shah launched the Sardar Patel Cooperative Dairy Federation in Gujarat, a multi-state initiative aimed at revolutionizing milk procurement, pricing, and sustainability in the dairy sector. Drawing inspiration from Amul’s successful cooperative model, the federation seeks to empower farmers nationwide by ensuring fair returns and a circular economy. The event also commemorated four years of the Ministry of Cooperation and the 150th birth anniversary of Sardar Vallabhbhai Patel.

In response to expanding business demands, India’s public sector banks (PSBs) are set to onboard approximately 50,000 new employees in the current financial year, with around 21,000 officer-level positions and the remainder comprising clerical and support staff. Leading the recruitment drive, State Bank of India (SBI) plans to hire nearly 20,000 personnel, including specialized officers.

India’s ambitious vision of becoming a developed nation by 2047 hinges on sustaining an average nominal GDP growth rate of approximately 10% annually, underscored by current market valuations and economic expansion. Rajiv Memani, newly appointed president of the Confederation of Indian Industry (CII), emphasizes the pivotal role of an impending interim trade agreement with the United States in dispelling market uncertainties and opening expansive opportunities for Indian enterprises, particularly in labour-intensive sectors.

At the BRICS Finance Ministers and Central Bank Governors meeting in Rio de Janeiro, India’s Finance Minister Nirmala Sitharaman engaged in high-profile bilateral talks with counterparts from Russia, China, Indonesia, and Brazil. These discussions emphasized deepening cooperation across finance, trade, technology, and climate finance, reflecting India’s commitment to fostering strategic partnerships within the Global South.

Indian equity markets are bracing for a pivotal week marked by a high-stakes U.S. trade policy deadline, key corporate earnings releases, and volatile foreign capital flows. The expiration of the 90-day suspension of additional U.S. tariffs on Indian goods looms on July 9, potentially triggering a 26% import duty unless negotiations yield a reprieve. Market sentiment will also be shaped by Q1 results from sectoral bellwethers like TCS and Avenue Supermarts, movements in Brent crude prices, rupee-dollar trends, and the release of U.S. Federal Reserve policy minutes.

Gold prices are poised for potential turbulence in the coming week, as global investors weigh several high-stakes developments—ranging from U.S. trade policy decisions to monetary policy signals from the Federal Reserve and macroeconomic data releases. The expiration of a 90-day suspension on tariffs impacting Indian exports, coupled with speculation around interest rate cuts, is expected to drive cautious sentiment across commodity markets. Analysts also highlight persistent central bank gold purchases, geopolitical tensions, and a weakening U.S.

A high-profile 22-member delegation from the Southern India Chamber of Commerce and Industry (SICCI) recently visited Sri City, a premier Special Economic Zone (SEZ) in Andhra Pradesh, to explore potential business collaborations and investment avenues. During the visit on July 4, delegates were briefed on the region’s cutting-edge infrastructure, strategic location, and conducive policy environment. Officials emphasized Sri City's appeal as a thriving hub, already home to over 230 companies from 31 countries.

In a landmark move to bolster India’s technological sovereignty and global competitiveness, the government has unveiled a Rs. 1 lakh crore Research Development and Innovation (RDI) scheme. Approved by the Union Cabinet on July 1, the initiative aims to stimulate private sector and startup investment in sunrise sectors such as quantum computing, artificial intelligence, robotics, and advanced manufacturing. The scheme promises long-term, interest-free funding and equity support to catalyze deep-tech entrepreneurship.

Foreign portfolio investors (FPIs) injected Rs 14,590 crore into India’s equity markets in June 2025, marking the third consecutive month of positive inflows. This influx was supported by improving global liquidity, easing geopolitical tensions, a rate cut by the Reserve Bank of India (RBI), and a strengthening rupee. However, this momentum reversed in early July, with FPIs pulling out Rs 1,421 crore in the first week, reflecting growing caution amid tariff uncertainties and volatile US economic data.

India’s equity markets witnessed a turbulent week, eroding over Rs. 70,000 crore in combined market capitalization from six of the country’s ten most valuable listed firms. Leading the decline were banking giants HDFC Bank and ICICI Bank, followed by Bajaj Finance, LIC, TCS, and Bharti Airtel. This sell-off occurred as the BSE Sensex dipped by 626.01 points or 0.74%. In contrast, Reliance Industries, Infosys, SBI, and Hindustan Unilever managed to post modest valuation gains, underscoring the sectoral divergence amid investor caution.