Finnovate Weekly Capsule (Aug 25-Aug 29, 2025)

Welcome to your financial wrap-up for the week. In this capsule, we break down key economic headlines and decode what they could mean for your financial life. Let’s dive in.

1. India GDP growth bounces back to 7.8% for the first quarter of FY26

Impact Analysis

• Sharply higher than the expected 6.4%–6.6% growth.
• Positive surprise amidst global tariffs, indicating economic resilience.

2. Services sector props up India real GDP growth in Q1FY26

Impact Analysis

• Agriculture growth offset by contraction in mining and quarrying.
• Strong performance in defence, public services, financial services, and trade.

3. India IIP for July 2025 grew at 3.47%, sharply higher than June

Impact Analysis

• Electricity and manufacturing saw a significant rebound.
• Concerns remain for export-driven segments due to global pressure.

4. India fiscal deficit rises to 29.9% of full year target (July 2025)

Impact Analysis

• ₹4.55 trillion added in just 2 months - double from last year same period.
• Defence spend, low tax collections, and growth initiatives drove deficit.

5. Questions raised on meeting FY26 fiscal deficit target of 4.4%

Impact Analysis

• Tariffs and geopolitical risks add pressure to government spending.
• Higher deficit may be tolerated if it supports growth momentum.

6. Second estimate: US Q2-2025 GDP revised up to 3.3%

Impact Analysis

• Shows resilience despite tariff-related fears.
• Q1 contraction largely due to pre-tariff inventory buildup.

7. US PCE inflation for July at 2.9%, 90 bps above target

Impact Analysis

• Tariff impact appears stronger on inflation than jobs.
• September rate cut may be under threat.

8. Export credit growth cools to 4.7% amid tariff fears

Impact Analysis

• Banks hesitant to lend due to global trade uncertainty.
• Export hubs like Surat, Tirupur, Ludhiana at risk of job cuts.

9. Adani Power secures ₹10,500 crore order for 800 MW project

Impact Analysis

• Lowest bidder with final tariff at ₹5.838 per KWH.
• Boosts power capacity for Madhya Pradesh.

10. ONGC to continue Russian oil imports despite 25% tariffs

Impact Analysis

• Depends on commercial viability and government directive.
• No immediate change in oil strategy confirmed by India.

11. Mukesh Ambani aims to double EBITDA by 2027

Impact Analysis

• Reliance to shift focus to AI and Deep Tech.
• Jio IPO and tariff hikes hinted for 2026.

12. Japan becomes hotspot for investors and global attention

Impact Analysis

• India-Japan cooperation boosted at leadership level.
• Warren Buffett expands bets on Japanese firms.

13. Higher GST likely on premium air travel and luxury aviation

Impact Analysis

• Business/First-class tickets may attract 18% GST.
• Private jets and helicopters may be taxed 28%–40%.

14. Adani Group reports ₹90,572 crore EBITDA for 12 months

Impact Analysis

• Driven by clean energy, infra, and incubation businesses.
• Supports annual ₹1.60 trillion capex plan.

15. NALCO to invest ₹30,000 crore in new smelter & power plant

Impact Analysis

• 60% funds towards smelter, 40% for coal-based power plant.
• Expansion based in Odisha; aims to enhance capacity.

16. Banks prepare for more MSME defaults amid tariff impact

Impact Analysis

• MSMEs showing signs of financial distress.
• Support measures expected from banks and government.

17. ICRA: Aviation industry may lose ₹10,500 crore in FY26

Impact Analysis

• Geopolitical tensions and tariff war hurt global aviation.
• Crude price volatility and weak passenger growth add pressure.

18. PM Modi to meet Xi Jinping and Putin at SCO Summit

Impact Analysis

• India-China thaw possible after Galwan fallout.
• Russia may feel more comfortable with closer India-China ties.

19. Textile exporters may shift final-stage production abroad

Impact Analysis

• Countries like Sri Lanka, Ethiopia, and Jordan likely options.
• Challenge lies in fulfilling Spring 2026 orders efficiently.

20. Vedanta’s Cairn arm to start offshore drilling in 2026

Impact Analysis

• Focus on Kutch and KG Basin; aims for 50% of India’s oil output by 2030.
• Massive scale-up of sub-sea infra and deepwater capabilities underway.

21. Ban on real money gaming disrupts ₹10,000 crore ad industry

Impact Analysis

• Gaming platforms account for 85% of India’s online gaming market.
• Digital advertisers forced to reassess their media strategy.

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. Always consult a qualified financial advisor before making investment decisions.