Starting today we will be publishing economic data about various metrics related to the Indian Economy on a monthly basis. The purpose of this exercise is to collate economic information from various sources and make it available in a single page. The various metrics we will be referring to include the Indian stock market indices, US Dollar rate, Gold prices, Indian mutual fund industry AUM, monthly GST collection, Purchasing Manager’s Index, Consumer & Wholesale Price Index, Unemployment rate in the country, ten year Bond yields, Foreign Exchange Reserves, Net Foreign Exchange Inflows or Outflows, Number of Demat Accounts, Private Consumption data, Capital Expenditure data, Crude Oil prices, GDP data and everything else that affects the Indian Economy. We will also be comparing our economy with the other important economies in the world like the US, UK, China, Japan and the European Union. We hope you like reading this article and find it informative. We will also appreciate your feedback and suggestions for improvements to this column and our website in general.
As the US- Iran blockade shows no sign of ending, the Indian Economy is poised for a good show in spite of increasing fuel prices and a weak monsoon. The Indian monsoon has shown limited potential except for certain parts of the country like in Gujarat, Assam and Maharashtra where there have been floods. Let us now take a look at the economic data for the months of June and July 2026.
India’s gross Goods and Services Tax (GST) collection for July 2026 stood at ₹2.11 lakh crore (₹2,11,205 crore), reflecting a 15.4% year-on-year increase. This surge was fueled by a 10.1% growth in domestic transactions and a sharp 28.8% spike in GST revenue from imports.
In July 2026, India’s Purchasing Managers’ Index (PMI) data revealed an overall cooling of economic activity, with growth across both manufacturing and services sectors hitting multi-year lows but remaining in expansion territory.
Manufacturing PMI: Slipped to 53.5 in July, down from 54.2 in June. This marks the weakest rate of expansion since August 2021. While total sales and new orders grew, the pace of increase slowed due to stiffer competition and softer client demand.
Services PMI: Plummets to 53.1 from 57.4 in June, representing the softest expansion in the services sector since February 2022. The sharp drop was driven by reduced client enquiries and elevated cancellations.
Composite PMI: Fell to 54.3 in July (down from 57.1 in June), marking the lowest level of private sector activity expansion since March 2022.
Positives: On a brighter note, export orders picked up in manufacturing, and companies continued to hire across both sectors to support operations, even if at a subdued pace.
The Monthly CPI Inflation June Data indicates that the annual retail inflation accelerated to an 18-month high of 4.38% (up from 3.93% in May), breaching the Reserve Bank of India’s (RBI) 4% medium-term target. The June 2026 provisional Wholesale Price Index stood at 110.2, reflecting a year-on-year inflation rate of 9.87%. This was driven largely by energy and commodity prices, with Fuel and Power inflation at 27.41%.
The US Dollar rate averaged at 95.86 Rupees for the month of July 2026. The Foreign Exchange Reserves stood at 692.866 Billion USD on the 31st of July 2026. The FPI Inflows in Equity and Debt stood at 4.1 Billion USD combined and the Special RBI Swap Window consisting of Concessional inflows under the Reserve Bank of India’s (RBI) special swap facility designed to attract Foreign Currency Non-Bank (FCNR(B)) deposits, External Commercial Borrowings (ECBs), and Overseas Foreign Currency Borrowings (OFCBs)—brought in roughly $40 billion since its inception in June through the end of July. The majority of these inflows were driven by a $32 billion to $36.7 billion surge in FCNR(B) deposits. The average Brent crude oil price in July 2026 was approximately $83.76 per barrel.
24K Gold price ranged between Rupees 140,000/- and 149,000/- in July 2026.
Mutual Funds had Net Outflow of 52,948.78 Crores in June 2026. Average monthly MF AUM of all types of mutual funds combined stood at 84,18,485.59 Crores in June 2026.
The total number of Demat Accounts across CDSL & NSDL stood at 23,44,31,480. India’s benchmark 10-year government bond yield closed out July 2026 averaging approximately 6.85%. Yields rose during the month due to elevated global crude oil prices, tighter banking system liquidity, and delayed inclusion of Indian bonds in the Bloomberg Emerging Market Index. The average closing value of the BSE Sensex for July 2026 was 77,143.76. NIFTY 50 averaged 24,089 points. BSE MIDCAP Index averaged at 46,292.59 and the BSE Small Cap Index averaged at 52,500 in July 2026.
Both Private Consumption data and Capital Expenditure data indicate a strong positive trend with the Gross Fixed Capital Formation (GFCF) proxying strong investment activity at roughly 30% of the Gross Domestic Product (GDP). The central government’s capex is set at ₹12.2 lakh crore, maintaining a strong pipeline for infrastructure build-outs (roads, railways, and urban development) to crowd in private investment. Private sector capital expenditure experienced structural shifts. While overall figures indicated a strong revival, investment concentration remains high with large conglomerates spearheading a substantial portion of the nation’s private capex.
India’s workforce comprises over 600 million employed individuals, with the working-age population (15+) recording a Worker Population Ratio (WPR) of approximately 51.4%. While India boasts a vast demographic dividend, the labor market faces notable challenges, including a significant gender gap and high youth unemployment. According to the Periodic Labour Force Survey (PLFS), the Labor Force Participation Rate (LFPR) is 54.4% for persons aged 15 and above. Worker Population Ratio (WPR) is 51.4%, meaning about half of the working-age population is actively employed. Unemployment Rate fluctuates around 3% to 5% nationally, though urban and youth unemployment rates often spike into the double digits. A vast portion of the workforce remains engaged in the primary sector (agriculture), which employs over 41% of the labor force. The rest are distributed between services (tertiary) and manufacturing/construction (secondary) sectors. More than 90% of India’s working population operates in the informal sector, often lacking structured contracts or visibility on formal job boards. Also, the majority of the workforce (over 50%) is self-employed, which includes everything from street vendors to gig workers and agricultural owners. Female labor force participation remains strikingly low, with only 31% to 40% of working-age women participating in the labor force compared to nearly 80% for men. While India produces millions of working-age adults annually, job creation in organized sectors lags behind. Urban youth and graduates face significant job scarcity, with some surveys showing Gen Z unemployment hovering around 11.9%.
The Global Economy is expected to grow at 3% in the calendar year 2026. The US Economy grew at annualized growth 1.5% for the June 2026 quarter. The Chinese Economy quarterly growth rate was 4.3% for the June 2026 quarter. The European Union grew at 0.5% annually for the June quarter. The Japanese Economy is expected to grow 0.6% annually in 2026 according to the Bank of Japan. The UK Economy annual growth is expected to be 0.9% in 2026. India’s gross domestic product (GDP) is projected to grow between 6.4% and 7.7% for the current financial year, with both the International Monetary Fund and the 16th Finance Commission maintaining robust outlooks despite challenges like rising oil prices and weak monsoons. The above comparison shows that the Indian Economy is doing much better than most important economies in the world although there is a temporary slowdown in the rate of growth.
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