Economy

India’s equity markets witnessed a strong upswing in a holiday-shortened week, with eight of the top-10 most valued companies collectively adding Rs 1,87,497.45 crore in market capitalization. The rally was driven by easing geopolitical tensions, improved global risk appetite, and stable domestic fundamentals. Bharti Airtel emerged as the biggest gainer, contributing significantly to the overall surge in valuations. Benchmark indices also reflected the bullish sentiment, with the BSE Sensex and Nifty 50 posting notable weekly gains, reinforcing investor confidence across sectors.

Pakistan has repaid USD 2 billion (approximately Rs 16,600 crore) in debt to the United Arab Emirates, signaling a step toward stabilizing its external finances. The repayment, confirmed by the State Bank of Pakistan, comes shortly after Saudi Arabia deposited USD 2 billion as part of a larger USD 3 billion financial support package. The sequence of transactions highlights the country’s reliance on bilateral assistance to manage liquidity pressures while maintaining its commitments to international partners amid ongoing economic challenges.

India’s foreign exchange reserves have staged a strong recovery, rising above the USD 700 billion mark after weeks of volatility triggered by global geopolitical tensions. According to the Reserve Bank of India, reserves increased by USD 3.825 billion to USD 700.946 billion for the week ended April 10. The rebound follows earlier declines linked to currency pressures and market interventions.

India’s gold import bill surged to a record USD 71.98 billion (approximately Rs 6 lakh crore) in FY26, driven primarily by elevated global prices despite a decline in import volumes. According to official data, imports rose 24 percent year-on-year, even as physical quantities fell to 721.03 tonnes. Meanwhile, silver imports witnessed an even sharper rise, jumping nearly 150 percent in value to USD 12 billion (around Rs 1 lakh crore), alongside a 42 percent increase in volume.

India has achieved a historic milestone in its external trade performance, with total exports of goods and services surpassing Rs. 71 lakh crore (USD 860 billion) in the financial year 2025–26. The record reflects a steady rise from Rs. 68.5 lakh crore (USD 825 billion) in the previous fiscal, underscoring the country’s growing integration into global supply chains. 

India’s trade with the Middle East witnessed a sharp contraction in March, with exports falling nearly 58 percent and imports declining over 51 percent, following escalating geopolitical tensions in the region. The disruption stems from a military escalation involving the United States and Israel targeting Iran, which has temporarily affected operations along the critical Strait of Hormuz. As a vital maritime corridor for India’s energy imports and export shipments, the disruption has significantly impacted trade volumes.

China has emerged as India’s largest trading partner in FY26, overtaking the United States after four consecutive years of American dominance. Bilateral trade between India and China reached Rs. 12.5 lakh crore (USD 151.1 billion), driven by strong import growth and a notable rise in exports. However, the surge has been accompanied by a widening trade deficit, which expanded to a record Rs. 9.3 lakh crore (USD 112.16 billion). The shift underscores deepening economic interdependence while raising strategic concerns over trade imbalances and supply chain dependencies.

India is preparing to send an official delegation to Washington next week to advance discussions on a proposed interim trade agreement with the United States. The visit comes at a crucial juncture, as both countries have already outlined a framework for the pact but are awaiting clarity on evolving tariff policies. Recent shifts in the U.S. tariff landscape, influenced by a Supreme Court ruling, have delayed the agreement’s formal signing.

India’s wholesale price inflation rose to 3.88 percent in March, marking the fifth consecutive month of increase and signaling renewed cost pressures across the economy. The rise was largely driven by a sharp uptick in fuel, power, and manufactured goods prices, influenced by geopolitical tensions in West Asia and higher global commodity costs. Compared with 2.13 percent in February and 2.25 percent a year earlier, the latest data reflects a broad-based inflationary trend.

Gold and silver prices declined in domestic markets on Monday, reflecting subdued global demand and cautious investor sentiment. According to the All India Sarafa Association, silver dropped Rs. 1,800 per kilogram to Rs. 2,45,200, while gold of 99.9 percent purity slipped Rs. 300 to Rs. 1,55,000 per 10 grams. The downturn follows broader weakness in international bullion markets, where expectations around interest rate movements and a stronger dollar continue to weigh on prices.