General

The e₹ (Digital Rupee), India’s central bank digital currency, is steadily gaining ground with retail and wholesale pilots in major cities and banks. Designed with both account-based and token-based models, it enables offline and online transactions, featuring programmable features that could revolutionize direct benefit transfers, merchant payments, and subsidy distribution—all while reducing physical cash-handling costs.

According to the latest HSBC Flash PMI, India’s private sector activity rose to 61.0 in June—up from 59.3 in May—marking the fastest expansion in 14 months. Both manufacturing (58.4) and services (60.7) saw strong growth, fueled by robust domestic demand and record-breaking export orders, the highest since 2014. This growth spurred hiring, with manufacturing jobs

The RBI’s recent inclusion of state debt into the Separate Trading of Registered Interest and Principal of Securities (STRIPS) program comes with a new caveat: a 14-year residual maturity cap. Life insurers, who rely on ultra-long bonds for matching long-term liabilities, warn that this limit may severely restrict their appetite for these instruments, reducing market

Geopolitical instability triggered by the U.S. strike on Iran’s nuclear site has put pressure on India’s economy—Oil prices spiked nearly 4%, driving down the rupee to 86.59 per USD and squeezing bond yields—Indian 10-year government bond yields hovered around 6.31%. Rising crude import costs may widen the current account deficit and fuel inflation. Markets are