Business
‘Indian Economy Continues To Gain Momentum Despite Uncertain Global Outlook’: FinMin Report
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‘Demand conditions across rural and urban India strengthened with…GST reforms and the festive season,’ the finance ministry says in latest Monthly Economic Review.
The finance ministry said the combination of macroeconomic stability, regulatory reforms, and ongoing structural initiatives is expected to have a positive multiplier effect on economic activity.
Despite global economic uncertainties and trade disruptions, India’s economy has continued to gather strength, supported by robust domestic demand, strong manufacturing and services activity, and contained inflation, according to the finance ministry’s Monthly Economic Review for September 2025 released on October 27.
“Amidst…uncertain global outlook, India’s economy continues to gain momentum. Demand conditions across rural and urban India strengthened with the implementation of the GST reforms and the festive season, coinciding with industry reports signalling robust growth in sales, particularly in sectors such as automobiles. On the supply side, the manufacturing and services sectors expanded healthily. Taking into account the higher-than-anticipated growth in Q1 FY26 and steady upward trends visible in Q2 FY26, India’s growth forecasts for FY26 have been upgraded,” the finance ministry said in the report.
The report noted that economic activity worldwide has remained steady over the past few months, despite adverse trade policy disruptions. As a result, global economic growth this year is now expected to fare better than initially feared. This is reflected in the International Monetary Fund’s (IMF) upward revision of the global growth forecast for 2025 to 3.2 per cent in October 2025, compared with 3 per cent in July 2025 and 2.8 per cent in April 2025. Several transitory factors, such as a lower effective tariff rate in the US and frontloading of trade, have contributed to propping up growth. However, this resilience masks underlying structural weaknesses which are coming to the fore, leaving projections for global growth in 2026 broadly unchanged since July 2025.
The IMF now expects India’s real GDP to grow 6.6% in FY26, while the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) projects an even higher 6.8% growth, reflecting upgrades of 20 and 30 basis points, respectively.
Inflation Under Control, Price Stability Expected to Continue
The report highlighted that inflation remains well within control, aided by continued deflation in food categories. Retail headline inflation eased to 1.54% in September 2025, bringing the Q2 FY26 average to 1.7%.
Core inflation (excluding food and fuel) stood at 4.6% in September, with prices of non-food items staying stable. The ministry said, barring any adverse weather events or supply chain shocks, price stability is likely to prevail.
The RBI expects inflation to average 1.8% in Q3 FY26, with a slight uptick in Q4 FY26 and Q1 FY27 as base effects fade.
RBI Measures Support Liquidity and Credit Flow
The finance ministry credited the RBI’s liquidity management for ensuring adequate credit availability to support growth. The transmission of monetary policy into money and credit markets remains effective, reflecting the central bank’s calibrated approach.
It added that the RBI’s recent regulatory and development policies demonstrate a “balanced response” to evolving macroeconomic conditions — combining prudence with reforms aimed at strengthening banks, boosting credit flow, simplifying forex management, and internationalising the Indian Rupee.
External Trade Remains Resilient
India’s external sector has also shown resilience despite a volatile global trade environment. Total exports of goods and services grew 4.4% year-on-year in the first half of FY26 to reach USD 413.3 billion.
While merchandise exports rose 3%, services exports expanded 6.1% during the same period. Core merchandise exports, excluding petroleum and gems & jewellery, grew a strong 7.5%, underscoring the competitiveness of India’s manufacturing base.
Labour Market, Reforms, and Innovation Drive Growth
The government’s emphasis on skill development and job creation has helped stabilise the labour market in H1 FY26, with rising labour force participation and employment growth in both industry and services.
The introduction of GST 2.0 is expected to further stimulate consumption and investment, creating a multiplier effect on employment and demand.
The report also highlighted the government’s focus on research and innovation to boost global competitiveness. The Promotion of Research & Innovation in Pharma-MedTech Sector (PRIP) scheme, launched by the Department of Pharmaceuticals, will provide around ₹11,000 crore in support for R&D projects. The initiative aims to transform India’s Pharma-MedTech sector into a globally competitive, innovation-driven ecosystem by funding early-stage research and promoting flexible collaborations focused on public health priorities.
Outlook: Growth Momentum to Sustain
The finance ministry said the combination of macroeconomic stability, regulatory reforms, and ongoing structural initiatives is expected to have a positive multiplier effect on economic activity. These efforts, it said, will support domestic demand, enhance resilience, and help sustain India’s growth momentum despite a challenging global environment.
“Looking ahead, the lower GST rate is expected to support a positive demand outlook by reducing the tax burden on consumers and businesses, stimulating consumption and investment across sectors and boosting employment generation in the economy. Moreover, a strong performance in the industries and services sector, along with a stable labour market, will further enhance domestic demand. Nevertheless, global uncertainties warrant caution and will continue to affect external demand, presenting downside risks to the growth outlook,” the ministry said.
The implementation of various growth-enhancing structural reforms and government initiatives, including GST 2.0, is expected to mitigate some of the negative impacts of these external challenges, it added.

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
October 27, 2025, 13:22 IST
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Business
Amazon Layoffs: Tech Giant Cuts More Jobs In These Domains, Separate From 14,000 Global Firings
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Amazon cuts 84 jobs in Seattle and Bellevue, separate from 14000 global layoffs, citing routine business reviews. CEO Andy Jassy links future reductions to generative AI expansion.
Amazon to cut more jobs
The spree of layoffs doesn’t appear to be ebbing despite large-scale firings in tech giants. Amazon has reportedly cut 84 jobs, separate from 14000 corporate layoffs in October globally, according to a report of Greekwire.
Amazon said as reported by Greekwire that these job cuts aren’t linked to broader workforce actions. “Each of its businesses regularly reviews its organizational structure and may make adjustments as a result. Terming it a “routine process”.
“We’ve informed a relatively small number of employees that their roles will be eliminated as the result of individual business decisions,” said Amazon spokesperson Brad Glasser. “We don’t make decisions like this lightly,” he added, noting that the company is providing affected employees with 90 days of full pay and benefits, transitional health coverage, and job placement services.
As a new State law the State’s new version of the Worker Adjustment and Retraining Notification Act, known as the WARN Act. requires companies/employers to disclose all terminations within 90 days of a prior notice, Amazon intimated the Washington Authorities.
According to an Amazon filing, the separations are set to take place between February 2 and February 23, 2026, affecting staff across more than 30 office locations in Seattle and Bellevue, along with six remote employees based in Washington.
The roles impacted reportedly include software development engineers, program managers, recruiters, HR specialists and UX designers, spanning levels from entry-level positions to directors and principals.
Amazon said employees were informed beginning in early November and were given at least 89 days’ advance notice, well above the 60-day requirement under the law. The company added that employees who secure internal transfers before their separation date will not be laid off.
In June, CEO Andy Jassy, who has aggressively sought to cut costs since becoming CEO in 2021, said that he anticipated generative AI would reduce Amazon’s corporate workforce in the next few years.
Jassy said at the time that Amazon had more than 1,000 generative AI services and applications in progress or built, but that figure was a “small fraction” of what it plans to build. Jassy encouraged employees to get on board with the company’s AI plans after it announced plans to invest $10 billion building a campus in North Carolina to expand its cloud computing and artificial intelligence infrastructure.
December 16, 2025, 08:36 IST
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Business
The giant heat pumps designed to warm whole districts
Chris BaraniukTechnology Reporter
MVV EnergieThe pipe that will supply the heat pump, drawing water from the River Rhine in Germany, is so big that you could walk through it, fully upright, I’m told.
“We plan to take 10,000 litres per second,” says Felix Hack, project manager at MVV Environment, an energy company, as he describes the 2m diameter pipes that will suck up river water in Mannheim, and then return it once heat from the water has been harvested.
In October, parent firm MVV Energie announced its plan to build what could be the most powerful heat pump modules ever. Two units, each with a capacity of 82.5 megawatts.
That’s enough to supply around 40,000 homes, in total, via a district heating system. MVV Energie aims to build the system on the site of a coal power plant that is converting to cleaner technologies.
The scale of the heat pumps was determined partly by limits on the size of machinery that could be transported through the streets of Mannheim, or potentially via barges along the Rhine. “We’re not sure about that yet,” says Mr Hack. “It might come via the river.”
One person well aware of the project is Alexandre de Rougemont, at Everllence (formerly MAN Energy Solutions), another German company that also makes extremely large heat pumps. “It is a competition, yeah,” he says. “We’re open about it.”
Heat pumps soak up heat from the air, ground or, in these cases, bodies of water. Refrigerants inside the heat pumps evaporate when they are warmed even slightly.
By compressing the refrigerant, you boost that heat further. This same process occurs in heat pumps designed to supply single homes, it just happens on a much larger scale in giant heat pumps that serve entire city districts.
As towns and cities around the world seek to decarbonise, many are deciding to purchase large heat pumps, which can attach to district heating networks.
These networks allow hot water or steam to reach multiple buildings, all connected up with many kilometres of pipe. Ever bigger models of heat pump are emerging to meet demand.
“There was a lot of pressure on us to change the heat generation to new sources, especially renewable sources,” explains Mr Hack as he discusses the decommissioning of coal-fired units at the Mannheim plant. The site is right by the Rhine, already has a hefty electricity grid connection, and is plugged in to the district heating network, so it makes sense to install the heat pumps here, he says.
He notes that the technology is possible partly thanks to the availability of very large compressors in the oil and gas industry – where they are used to compress fossil fuels for storage or transportation, for example.
MVV EnergieWork on the Mannheim project is due to start next year. The heat pumps – with a combined capacity of 162MW – are set to become fully operational in the winter of 2028-29. Mr Hack adds that a multi-step filter system will prevent the heat pumps sucking up fish from the river, and that modelling suggests the system will affect the average temperature of the river by less than 0.1C.
Installations such as this are not cheap. The Mannheim heat pump setup will cost €200m ($2.3m; £176m). Mr de Rougemont at Everllence says that, at his company, heat-pump equipment costs roughly €500,000 per megawatt of installed capacity – this does not include the additional cost of buildings, associated infrastructure and so on.
EverllenceEverllence is currently working on a project in Aalborg, Denmark that will be even more powerful than the system in Mannheim, with a total capacity of 176MW. It will use smaller modules, however – four 44MW units – and is due to become operational in 2027, when it will supply nearly one third of all heating demand in the town.
Those 44MW machines are actually the same ones used in a previous project, now fully operational, to the south of Aalborg in Esbjerg. There, they don’t run at maximum capacity but rather supply 35MW each.
Large hot water storage tanks, each able to hold 200,000 cubic metres of liquid, will give the system added flexibility, adds Mr de Rougemont: “When the electricity price is high, you stop your heat pump and only provide heat from the storage.”
Veronika Wilk at the Austrian Institute of Technology says, “Heat pumps and district heating systems are a great fit.” Such systems can harvest heat from bodies of water or even wastewater from sewage treatment plants.
Dr Wilk notes that, when you use multiple large heat pumps on a district heating network, you gain flexibility and efficiency. You could run two out of four heat pumps in the autumn, say, when less heat is required than during the depths of winter.
Getty ImagesAll the systems mentioned so far harvest energy from water sources but, less commonly, very large heat pumps can use the air as a heat source, too. Even in a relatively cold city such as Helsinki.
“The sea in front of Helsinki is too shallow,” explains Timo Aaltonen, senior vice president of heating and cooling at Helen Oy, an energy firm. “We calculated that we would need to build a tunnel more than 20km long to the ocean, to get enough water [with a] temperature high enough.”
Helsinki is in the process of radically overhauling its district heating system. The city has added heat pumps, biomass burners and electric boilers to a 1,400km network that links up nearly 90% of buildings in the Finnish capital, adds Mr Aaltonen.
Heat pumps convert single kilowatt hours of electricity into multiple kilowatt hours of heat but electric boilers can’t do this and are therefore considered less efficient.
I ask why Helen Oy decided to install hundreds of megawatts of these boilers and Mr Aaltonen says that they are cheaper to install than heat pumps and having them also means he and colleagues don’t have to rely entirely on the air, which is limited in terms of how much heat it can provide at scale. Plus, the electric boilers can help to soak up surplus renewables and provide an electricity grid-balancing function, he says.
There are no heat pumps in the UK that rival the systems under development in Denmark, Germany and Finland. However, some new district heating networks are on the way, such as the Exeter Energy Network, which will supply the University of Exeter and other customers.
The minimum planned capacity of the network is 12MW. It will feature three 4MW air-to-water heat pumps, with the first unit due to become operational in 2028.
Keith Baker at Glasgow Caledonian University, who researches district heating systems, says the UK has opportunities to make more of this technology. Water in disused mines, which maintains a relatively stable temperature, is beginning to supply larger heat pumps here, for example.
Post-industrial and rural areas where there is adequate space to install heat pumps and heat storage tanks are “the sweet spots”, he says.
Business
UK launches taskforce to ‘break down barriers’ for women in tech
The government has launched a new taskforce it says will help women “enter, stay and lead” in the UK tech sector.
Led by technology secretary Liz Kendall, it will see female leaders from tech companies and organisations advise the government on how to boost diversity and economic growth in the industry.
BCS, the Chartered Institute for IT, recently suggested women accounted for only 22% of those working in IT specialist roles in the UK.
Ms Kendall said the Women in Tech group would “break down the barriers that still hold too many people back”.
“When women are inspired to take on a role in tech and have a seat at the table, the sector can make more representative decisions, build products that serve everyone,” she said.
BCS, the Chartered Institute for IT, warned in December the amount of women working in the UK tech sector still lagged far behind men.
It said the government should look to help close the gender gap in order to meet its ambitious AI goals.
“We cannot create high-trust, high-integrity AI systems if the profession behind them is missing out on the talents and perspective of half the population,” said chief executive Sharron Gunn.
Ms Kendall will lead the taskforce alongside Anne-Marie Imafidon, founder of Stemettes, who has been appointed as the Women in Tech Envoy.
Dr Imafidon, who passed A-level computing aged 11 and received a Master’s Degree in Maths and Computer Science from the University of Oxford aged 20, has sought to encourage more young women into careers in Stem – science, technology, engineering and maths.
She told the BBC her role would build on more than a decade of work to establish greater equality for – and representation of – women.
But now, amid what she called “a fourth industrial revolution”, was a key moment to “be part of shifting who is making those decisions for what comes next”.
“This isn’t just about having women being the driving force and building the technology, but this is about building technology that benefits everybody,” she said.
The government said the taskforce will advise on ways to make the tech sector more representative and “ensure the UK accesses the full talent pool, market opportunities, and innovation capacity needed for economic growth”.
BT Group boss Allison Kirkby, Revolut chief executive Francesca Carlesi and Dr Hayaatun Sillem, chief executive of the Royal Academy of Engineering, are among its 15 founding members.
It also includes TUC assistant general secretary Kate Bell, director of public policy at Uber Emma O’Dwyer, and Sue Daley, director of technology and innovation at industry group techUK.
“Entry routes, career progression to leadership, and access to capital are just some of the barriers women in tech still face today,” Ms Daley said.
“Achieving gender equality is long overdue, and I am honoured to join the Women in Tech taskforce alongside Liz Kendall and several inspiring women from across the industry, working together to chart a path forward for true gender equality.”
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