Daily News - Monday, 8 June 2026

World Bank Predicts India Can Grow Over 8% Despite Oil Shocks (Economic Times)

India’s economy is projected to sustain 7.5-8% growth despite elevated crude prices, according to Neelkanth Mishra, Executive Director at the World Bank and member of the Prime Minister’s Economic Advisory Council. Mishra highlighted that India grew 7.1% in FY25 even under fiscal tightening, and with credit growth now accelerating, the economy was expanding above 8% until March 2026. He cited robust domestic indicators, including 29% year-on-year car sales growth in May, strong mall footfalls, and cement demand in high single digits, underscoring resilient consumption. On oil, Mishra explained that India’s refining surplus cushions the impact: while other importers face landed costs of USD $150 (INR ~12,450) per barrel equivalent, India’s effective cost is closer to USD $120 (INR ~9,960) due to refining margins. With crude easing to USD $94-95 (INR ~7,800-7,900) per barrel, the feared subsidy of ₹20-30 per litre is unnecessary, as the current cushion of ₹8 per litre suffices. He concluded that while oil at USD $100 (INR ~8,300) per barrel creates a 2% drag on growth, India’s fiscal discipline and refining advantage mean growth momentum remains intact, with the currency not GDP which is the main vulnerability.

Private Investment Surge 51% to USD $672 Billion with Manufacturing, Power and Infrastructure Leading FY26 Investment (money control)

According to the SBI Research Ecowrap report, private investment announcements in India surged 51% year-on-year to INR ₹56 lakh crore (USD $672 billion) in FY26, compared to INR ₹37 lakh crore (USD $444 billion) in FY25, underscoring renewed confidence in capital expenditure. The report highlighted that gross fixed capital formation grew 10.8% in Q4FY26, reflecting robust investment activity across sectors. Manufacturing accounted for 28.9% of new proposals, followed closely by the power sector at 28.7% and infrastructure at 23.1%, making them the largest contributors to the investment boom. Corporate asset creation also accelerated, with the gross block of over 5,000 listed companies rising from INR ₹87 lakh crore (USD $1.04 trillion) in March 2022 to INR ₹145 lakh crore (USD $1.74 trillion) in March 2026. On average, Indian corporates have added more than INR ₹13 lakh crore (USD $156 billion) in gross block annually over the past five years, signaling sustained expansion in productive assets. Policymakers view this surge in private investment as a critical driver of India’s growth momentum, reinforcing the economy’s resilience despite global uncertainties.

India Welcomes Chinese Investments in Some Sectors While Reviewing Trade Deficit With China (Financial Express)

At the Financial Express Best Banks Awards 2026 in Mumbai, Union Commerce and Industry Minister Piyush Goyal stated that India welcomes investments from China and other neighbouring countries in desirable sectors but firmly ruled out joining the Regional Comprehensive Economic Partnership (RCEP). He emphasized that India’s investment screening framework, introduced through Press Note 3 of 2020 and recently amended by Press Note 2 of 2026, is designed to prevent opportunistic acquisitions, allowing up to 10% beneficial ownership without automatic coverage, while excluding Pakistan. Addressing concerns over the rising trade deficit with China, Goyal urged policymakers to examine the composition of imports before drawing conclusions. He recalled that extensive consultations 200 stakeholder meetings across India, with only three supporting RCEP showed industry and farmers feared unfair competition and damage to domestic manufacturing. Goyal criticized the previous Congress led government for entering RCEP negotiations without public consultation, arguing India already had FTAs with ASEAN nations and advanced talks with Australia, making RCEP unnecessary. He concluded that joining RCEP would have devastated Indian manufacturing, while the current government remains committed to protecting strategic sectors and encouraging balanced foreign investment.