Business
Trump’s ‘dead Economy’ Jibe Falls Flat As India’s GDP Growth Surges To 7.8%
New Delhi: In a major embarrassment for US President Donald Trump, who in a rhetorical overdrive termed India as a “dead economy,” the country’s economic growth has accelerated to 7.8 per cent in the April to June quarter, fortifying its position as the world’s fastest-growing major economy.
The strong economic performance amid the US tariff turmoil comes on the back of a 7.4 per cent growth in the previous Jan-March quarter (Q4 FY25).
The strong macroeconomic fundamentals of the economy are reflected in the high foreign exchange reserves, which are sufficient to finance 11 months of imports, and inflation is well under control.
(Also Read: Key Financial Rules Changing From September 2025)
Union Commerce and Industry Minister Piyush Goyal said on Friday that India’s exports this year will be higher than last year, reflecting the growing competitiveness and resilience of the Indian industry, while the government is reaching out to partner countries across the globe to open up new opportunities.
Goyal highlighted India’s expanding network of Free Trade Agreements (FTAs) with developed countries, including Australia, the UAE, Switzerland, Norway, Liechtenstein, Iceland, and the UK, with negotiations ongoing with the European Union and others.
These agreements will further open global opportunities for Indian industries such as construction, steel, and allied sectors, he pointed out.
Goyal further highlighted that several developed countries are eager to expand trade relations with India, noting that nations such as Qatar and the United Arab Emirates (UAE) have expressed keen interest in entering into Free Trade Agreements (FTAs) with India.
(Also Read: Key Financial Rules Changing From September 2025)
The minister’s assurance came in the backdrop of the hike in US tariffs on Indian exports to 50 per cent as a punitive step for buying Russian oil.
According to economists, the macroeconomic impact of the US hike in tariffs would be cushioned by the large size of India’s domestic market.
A recent Morgan Stanley report stated that India is the “best placed country in Asia,” amid the global uncertainty triggered by US President Donald Trump’s threat to jack up tariffs, because of the nation’s low goods exports to GDP ratio.
“While India is exposed to direct tariff risks, we believe on balance India is less exposed to global goods trade slowdown, considering that it has the lowest goods exports to GDP ratio in the region,” the report stated.
According to a Fitch report, the large size of India’s domestic market, which reduces reliance on external demand, is expected to insulate the country from the US tariff hike, with the economy expected to maintain a growth of 6.5 per cent in FY26.
Pakistan’s inflation rose to 7% in February 2026, marking the highest level since October 2024, as electricity price hikes and rising global uncertainty pushed consumer costs upward.
According to the Pakistan Bureau of Statistics, the Consumer Price Index (CPI) increased 6.98% year-on-year, compared to 5.8% in January and 1.5% in February last year.
Electricity Tariffs Drive Surge
The biggest impact came from higher electricity prices after subsidy cuts and revised tariff structures.
Housing, water, electricity, gas & fuels index rose 9.65% annually
Electricity prices alone increased 10.03% month-on-month
These adjustments significantly burdened households already coping with high living costs.
Core Inflation & Interest Rates
Core inflation showed slight easing:
Urban core inflation: 7.1% (down from 7.2%)
Rural core inflation: Stable at 8.3%
The rise in CPI reduced real interest rates by around 120 basis points. The State Bank of Pakistan kept its policy rate unchanged at 10.5% last month.
Food Prices Mixed
Food inflation rose to 5.8%, up from 3.9% in January.
Major increases:
Tomatoes: +82%
Wheat: +42.6%
Wheat flour: +25.9%
Meat: +11.3%
Milk powder: +9.4%
Price declines:
Potatoes: -40%
Chicken: -21.8%
Gram pulse: -21.7%
Onions: -17%
Wholesale Pressure Rising
The Wholesale Price Index (WPI) increased to 1.0%, signaling growing producer-level cost pressures that could pass on to consumers in coming months.
External Risks Loom
Analysts warn that escalating Middle East tensions could:
Raise global oil prices
Increase Pakistan’s import bill
Pressure the rupee
Worsen inflation further
With millions of Pakistanis working in Gulf countries, any prolonged instability could also affect remittances — a key pillar of the economy.
Last Updated:
Gold and silver prices in India eased after a rally driven by Middle East conflict. 24-carat gold is Rs 1,70,020 per 10gm, silver below Rs 3,00,000.
Amid escalating tensions in the Middle East, gold and silver prices have witnessed a sharp surge, with market experts warning of further increases if the conflict intensifies.
Gold and silver prices: Gold and silver prices across India eased slightly after rallying as investors rushed towards safe havens due to the conflict in the Middle East. The price of 24-carat gold stood at Rs 1,70,020 per 10 grams, while 22k gold was available at Rs 1,55,850 per 10 grams. These rates do not include GST and making charges.
Silver also fell by Rs 20,000 to come down below Rs 3,00,000.
On MCX, gold futures, whose expiry is on April 02, 2026, was traded at Rs 1,66,199 per 10 gram, with a rise of 2.53 per cent. While silver futures expiring on March 05, 2026, were trading at Rs 2,80,090 per kg, with a fall of 0.90 per cent.
What Is The Price Of 22kt, 24kt Gold Rates Today In India Across Key Cities On March 03?
| City | 22K Gold (per 10gm) | 24K Gold (per 10gm) |
|---|---|---|
| Delhi | Rs 1,56,000 | Rs 1,70,170 |
| Jaipur | Rs 1,56,000 | Rs 1,70,170 |
| Ahmedabad | Rs 1,55,900 | Rs 1,70,070 |
| Pune | Rs 1,55,900 | Rs 1,70,070 |
| Mumbai | Rs 1,55,850 | Rs 1,70,020 |
| Hyderabad | Rs 1,55,850 | Rs 1,70,020 |
| Chennai | Rs 1,55,850 | Rs 1,70,020 |
| Bengaluru | Rs 1,55,850 | Rs 1,70,020 |
| Kolkata | Rs 1,55,850 | Rs 1,70,020 |
What Factors Affect Gold Prices In India?
International market rates, import duties, taxes, and fluctuations in exchange rates primarily influence gold prices in India. Together, these factors determine the daily gold rates across the country.
In India, gold is deeply cultural and financial. It is a preferred investment option and is key to celebrations, particularly weddings and festivals.
With constantly changing market conditions, investors and traders monitor fluctuations closely. Staying updated is crucial for effectively navigating dynamic trends.
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March 03, 2026, 09:52 IST
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Shop price inflation eased in February but consumers are still paying 3.5% more for food than a year ago, figures show.
Overall shop inflation fell slightly to 1.1% from January’s 1.5%, in line with the three-month average of 1.1%, as fierce competition between retailers kept price rises in check and customers benefited from promotions across health, beauty and fashion, according to the British Retail Consortium (BRC) and NIQ.
Prices of products other than food were down 0.1% year on year, a significant drop from January’s growth of 0.3%.
Overall food inflation fell slightly to 3.5% from 3.9% in January, while fresh food prices remained 4.3% higher than last February, a slight drop from January’s 4.4% and above the three-month average of 4.2%.
However falling global costs pushed ambient food inflation down to 2.3% – its lowest level in four years and a significant fall from January’s 3.1%.
BRC chief executive Helen Dickinson said: “Households got some welcome relief in February as shop price inflation eased.
“While the direction of travel is promising, prices are still rising, and many consumers remain under pressure.”
Mike Watkins, head of retailer and business insight at NIQ, said: “Since the start of the year, we have seen some competitive pricing across both the food and non-food channels which is helping to bring down inflation.
“Whilst the inclement weather and weak sentiment is making consumer demand rather unpredictable for retailers, at least shoppers are now seeing some of their cost-of-living pressures start to ease.”
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