Business
India Holds Fastest-Growing Title Even as Rupee Drag Slips Its Global Rank
India remains the world’s fastest-growing major economy in FY2026 at 7.4 per cent — but a weakening rupee and a revised GDP baseline have nudged the country to sixth place in nominal global rankings. Economists are unanimous: this is a currency story, not a growth story. GIN Business Desk | May 8, 2026 | Economy · Finance
India’s Economic Survey for FY2025–26 placed real GDP growth at 7.4 per cent — the fourth consecutive year India has held the title of the world’s fastest-growing major economy. The OECD and World Bank independently projected 7.6 per cent growth, driven by robust private consumption, infrastructure capital expenditure, a booming services export sector, and record-high manufacturing output under PLI schemes.
The IMF’s April 2026 World Economic Outlook, however, placed India at sixth in nominal GDP rankings — a dip from fifth. Two compounding factors explain this: first, a revised base year shifting from 2011–12 to 2022–23 corrected prior overestimation; second, an approximately 11 per cent depreciation of the Indian rupee against the US dollar mechanically reduced the dollar-value of India’s output.
“The dip is temporary and currency-driven — a statistical artifact, not a reflection of the underlying economy. India remains on course to become the world’s third-largest economy by 2031.” — Economic Survey FY2026
On the positive side, the fiscal year brought transformative milestones. S&P upgraded India’s sovereign credit rating from BBB– to BBB — the first upgrade in over two decades — citing structural reforms, digital infrastructure expansion, and fiscal consolidation. India’s forex reserves cover more than 11 months of imports, providing exceptional resilience. FDI inflows crossed $90 billion for the first time, reflecting sustained confidence from global investors.
The government’s capex push continued to be the backbone of growth — Union Budget 2025–26 allocated ₹11.11 lakh crore for infrastructure, with roads, railways, ports, and digital connectivity absorbing the lion’s share. The PLI scheme across 14 sectors has generated over 12 lakh direct jobs in FY26 alone. The semiconductor mission saw its first chip fabrication facility reach operational status in Gujarat — a landmark moment in India’s technology self-reliance journey.
Looking ahead, the government projects real GDP growth of 6.8–7.2 per cent for FY2027. NITI Aayog has outlined a path to $5 trillion by FY2028, underpinned by the India–EU Free Trade Agreement taking effect in early 2027 and a surge in services exports, particularly in AI-enabled software and digital services.
Key Facts Box:
- GDP Growth FY26: 7.4%
- World Bank Estimate: 7.6%
- Nominal GDP: $4.15 Trillion
- Global Rank (Nominal): 6th
- Forex Reserves: $700B+
- FDI Inflows FY26: $90B+
- S&P Rating: BBB (Upgraded)
- Capex Allocation: ₹11.11 Lakh Crore
Business
India: RBI policy, rupee and IT earnings
India’s markets face a crucial week as the RBI policy decision and TCS earnings approach, while rupee weakness and global pressures weigh on the Nifty.
Business
Pressure on US automakers. Reuters reports that GM, Ford and Stellantis could see their combined US market share dip to 36% for the quarter
GM, Ford and Stellantis could see their combined U.S. market share fall to around 36%, highlighting growing pressure on Detroit’s biggest automakers.
Detroit Three Slip to Record-Low US Market Share as Gas Prices Drive Buyers to Hybrids
GM, Ford and Stellantis are heading for their weakest US showing on record. Cox Automotive estimates their combined third-quarter market share at around 36%, an all-time low, while hybrid-heavy Asian brands including Toyota and Honda are expected to account for more than half of new vehicle sales.
The driver is fuel costs. The Iran war has pushed US gasoline to a national average of $4.43 a gallon in September, according to AAA, up from $3.20 a year earlier, and buyers are turning to hybrids and more efficient models.
Toyota is the clearest winner. Its electrified sales climbed 28.5% to 363,367 units, or 57.4% of its US sales, and its Corolla hybrid jumped nearly 36%. GM kept the top US sales spot, but its lead over Toyota shrank to 37,751 vehicles, and Cox has said Toyota could overtake GM in the coming years if the trend continues. GM’s quarterly sales fell 5.5% to 670,974 units. Honda posted a record hybrid quarter of more than 106,000 units, with sales up 9.3%. Stellantis sales were roughly flat at 324,277.
Ford is under particular pressure. Cox expects its sales to fall 8.8% through the first three quarters of the year, with its market share dropping nearly a full point to 12.5%. Cox also forecast that Hyundai Motor Group would outsell Ford for the first time, 511,421 vehicles to 504,172, though Ford argues that Hyundai and Kia are separate companies and that it outsold the two combined year to date.
Overall US sales for the quarter are estimated at about 4.1 million, down about 1% from a year earlier. The average new-vehicle transaction price rose 1.9% to $50,089 in August.
What to watch: Ford’s reported third-quarter sales, gasoline prices, and whether Detroit’s automakers shift more of their production toward hybrids.
Business
Chip-sector M&A. A chip supplier announced it is buying Synaptics for $5.7 billion in cash
Synaptics shares jumped 14% after a chip supplier announced a $5.7 billion all-cash deal to acquire the company.
onsemi Switches to $5.7 Billion All-Cash Deal for Synaptics After Rival Bid Surfaces
Shares of Synaptics jumped about 14% after chipmaker onsemi (ON Semiconductor) agreed to buy it in an all-cash deal valued at about $5.7 billion. The revised agreement, announced late Thursday, October 1, pays $123 per share in cash and replaces the all-stock deal the companies signed on June 25, which was valued at about $7 billion.
The change followed competing interest. A filing shows Synaptics had received an unsolicited, non-binding proposal from another strategic party, which likely drove the renegotiation. Synaptics’ board unanimously concluded that the amended deal remains in shareholders’ interests.
Shares of Synaptics opened more than 14% higher on Friday, moving close to the cash offer. The stock had closed at $106.15 the previous day. onsemi shares rose about 6% in premarket trading from a prior close of $80.08, with investors welcoming that the cash structure avoids issuing new shares that would have diluted existing holders.
Under the original agreement, Synaptics holders were to receive 1.350 onsemi shares for each share they own. The new deal will be funded with cash on hand and about $2.45 billion in committed debt financing from Morgan Stanley. onsemi expects the acquisition to add to its non-GAAP earnings per share immediately, and has identified $200 million of annual run-rate synergies.
The deal still needs approval from Synaptics shareholders and regulators, with completion expected by mid-2027. It came amid a broader rally in semiconductor stocks.
Spain’s train crash and upcoming election. Spain is dealing with its second deadly train crash this year.
Hong Kong’s Tai Po fire fallout. Leader John Lee apologized
Serbia’s media shake-up. The head of public broadcaster RTS resigned after the student list won an election.
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AR Rahman reacts to “anti-national” row over Imtiaz Ali’s Main Vaapas Aaunga
According to Dior Couture, this taboo fashion accessory is back
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