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Bear Attack Leaves 4 Injured In North Japan

In the last fiscal year to March, bear sightings nationwide topped 50,000.

India to bargain in trade talks with US, UK

India is seeking to safeguard exporters’ interests in trade negotiations with the US and UK this week, with implications for trade deals with two of its major partners.India will ask for exemptions from any tariffs that may arise from ongoing US trade investigations during talks with a US team led by Brendan Lynch in New Delhi starting Tuesday. Separately, India’s Commerce Minister Piyush Goyal will hold talks with his UK counterpart Peter Kyle in New Delhi to seek exemptions for Indian steel exports from British safeguard duties due to take effect next month. New Delhi has warned it could scale back some concessions under the free trade agreement it signed with the UK last year if it does not receive relief.The talks come at a difficult moment for India. The war in Iran, which has severely disrupted shipping through the Strait of Hormuz, has hit not only energy supplies but also access to a key export market for Indian goods. While the government has moved to cushion the impact on exporters, concerns are growing that a prolonged conflict could weigh on trade this fiscal year. Trade agreements with the US and the UK could help cushion some of those headwinds while attracting foreign investment at a time when the rupee is under pressure. They are also a key part of Prime Minister Narendra Modi’s strategy to diversify India’s export markets amid growing geopolitical uncertainty.In the case of the US, however, some analysts argue that New Delhi has less reason to rush.The rationale for quickly concluding a trade deal weakened after the US Supreme Court struck down the reciprocal tariff framework, according to Ajay Srivastava, founder of the New Delhi-based Global Trade Research Initiative.“More importantly, a bilateral trade agreement would offer no guarantee against future US trade actions,” Srivastava said. “It would be wise to wait for US trade policy to stabilize than to lock itself into long-term expensive obligations.”Last year, the White House imposed some of the world’s highest tariffs on Indian goods, partly in response to New Delhi’s purchases of Russian oil. The two countries reached an agreement on an interim trade pact earlier this year, before the US Supreme Court struck down President Donald Trump’s sweeping reciprocal tariffs.Soon afterward, however, the Office of the US Trade Representative launched investigations under Section 301 of the Trade Act into several countries, including India, over concerns about forced labor and excess production capacity. If the investigations result in adverse findings, additional tariffs could be imposed.New Delhi has urged Washington to address the issue within the framework of ongoing trade negotiations rather than through unilateral measures. The matter is likely to feature in talks this week between Indian officials and a US trade delegation visiting New Delhi.“Our approach with the US needs a rethink,” said Abhijit Das, a New Delhi-based independent trade expert who has also worked with the Indian government. Also on Tuesday, UK’s Kyle is scheduled to meet Indian officials to discuss speeding up the implementation of the India-UK trade pact. The UK discussions are expected to focus on New Delhi’s concerns over Britain’s recent steel safeguard measures, which India says could restrict market access for its steel exports. On Monday, a senior Indian government official said New Delhi could scale back tariff concessions on a range of British products, including Scotch whisky, under the trade agreement signed last year if the issue is not resolved.

India's CPI inflation expected to rise to 4.8%

New Delhi: India's CPI inflation is expected to rise by around 70 bps to 4.8 per cent with crude oil averaging USD 90/bbl in FY27, according to a report by 360 ONE Capital. This projection comes as the ongoing conflict in West Asia and a downgraded domestic monsoon forecast introduce fresh challenges to India's macroeconomic trajectory.The report noted that the conflict in West Asia and the resulting energy supply disruptions warrant a reassessment of key macroeconomic assumptions. "Our revised base case assumes de-escalation by mid-June, with crude oil averaging USD 90/bbl in FY27. Under this scenario, CPI inflation is expected to rise by around 70 bps to 4.8% (from 4.1%), while GDP growth moderates to 6.3% (from 6.7%). The fiscal deficit is projected to widen to 4.6% of GDP (from 4.4%), and the current account deficit to 2.1% of GDP (from 1.3%)," the report stated.Also read: India meets FY26 fiscal deficit goal at 4.4% of GDP despite revenue and global pressuresThe report noted that India's economic momentum remains stable due to domestic consumption and public spending, but geopolitical frictions pose tangible downside risks. Supply routes through the Strait of Hormuz are particularly vital, as India sources nearly 50 per cent of its LPG and around 30 per cent of its natural gas requirements through this route.Even though the "net petroleum import bill has declined from 5.5% of GDP in FY14 to around 3.0% in FY25, the economy remains exposed to a prolonged disruption in energy supplies."On the monetary front, global financial conditions continue to tighten as central banks react to persistent inflationary impulses. While the Reserve Bank of India is expected to keep policy rates unchanged in the upcoming meeting, domestic bond yields face upward pressure from a widening fiscal deficit and higher energy costs.Also read: Manufacturing activity at 3-month high in May despite cost woesThe report mentioned that the impact on macroeconomic variables is likely to be non-linear, implying significantly larger downside risks if the conflict persists. "A further USD 10/bbl increase in crude prices above our base assumption could push inflation to 5.6% (assuming a partial pass-through of around 5% to retail fuel prices), lower GDP growth by an additional 40 bps to 5.9%, widen the current account deficit to 2.5% GDP, and increase the fiscal deficit to 4.8% of GDP," the report added.Compounding these external geopolitical risks, the domestic agricultural outlook faces unexpected pressure. In its Second Long Range Forecast, the IMD downgraded the Southwest Monsoon 2026 forecast to 90 per cent of the Long Period Average (LPA) from 92 per cent estimated in April.This development represents the weakest monsoon outlook since 2015, which raises immediate concerns over overall agricultural output and rural demand.In the global perspective, the IMF has lowered its 2026 global growth forecast by 20 bps, citing risks from the Middle East conflict through higher commodity prices, inflation, and tighter financial conditions.The report stated that under the IMF's reference scenario, "global growth is projected at 3.1% in 2026 and 3.2% in 2027, below both the recent 3.4% pace and the historical average of 3.7%. In adverse scenarios, growth could slow to 2.5% or even 2.0%, accompanied by significantly higher inflation, with emerging markets expected to be disproportionately affected."

India's fiscal deficit surges in April as receipts drop, spending jumps

The fiscal deficit in April, reflecting the gap between expenditure and revenue financed by borrowing, reached 21.4% of the ₹16.96 trillion budget target for FY27, according to the latest accounts released by the Controller General of Accounts (CGA) on Monday.

Beyond CM chair tussle: What could make or break DKS's reign in Karnataka

DK Shivakumar takes the helm as Karnataka's new Chief Minister, facing a daunting array of challenges beyond his renowned firefighting skills. He must navigate complex factional tensions, manage caste expectations, address fiscal pressures, and prove his governance capabilities. The success of his tenure hinges on balancing these demands and establishing his authority.

Poor run of Telangana finances continues in the new fiscal with just 7.43% of target achieved

State borrowed ₹11,413 crore during the month to meet immediate requirements, according to provisional figures submitted to the Comptroller and Auditor General of India

IREDA shares drop 4% post Q4 results. What’s spooking investors?

The shares of Indian Renewable Energy Development Agency (IREDA) fell more than 4% on Monday after the company reported a consolidated net profit of Rs 493 crore for the fourth quarter of FY26, marking a nearly 2% year-on-year (YoY) decline from the Rs 502 crore net profit reported in the corresponding quarter of the previous fiscal year.IREDA shares dropped to Rs 127.81 apiece on the NSE, bucking the broader market optimism. The company on Friday reported a 14% YoY increase in revenue from operations to Rs 2,175 crore in Q4FY26, compared with Rs 1,905 crore in the year-ago period. Total income also rose 14% YoY to Rs 2,181 crore, while total expenses increased around 21.5% YoY to Rs 1,562 crore during the quarter under review.IREDA announces dividendAlong with its Q4 results, IREDA said its board of directors has recommended a final dividend of Rs 0.75 per share (7.5%) on a face value of Rs 10 each for FY26, subject to shareholders' approval at the upcoming Annual General Meeting (AGM). If approved, the dividend will be paid within 30 days of its declaration at the AGM. The record date for determining shareholder eligibility will be announced later.IREDA also said its board of directors has discussed the recent fines imposed on the company by BSE and NSE. The company said last week that the stock exchanges had levied fines of Rs 2,02,960 each for alleged non-compliance related to the composition of its board and certain other SEBI provisions during Q4."The company is regularly following up with the Administrative Ministry, i.e., the Ministry of New and Renewable Energy (MNRE), for the appointment of the requisite number of Independent Directors on the Board of IREDA and has requested that MNRE expedite the process for the appointment of Independent Directors (including a woman director). The Board also requested that the stock exchanges waive the fines imposed on the company and refrain from imposing any further fine or penalty, since the matter relating to the appointment of Independent Directors is beyond the control of the company and there is no violation on the part of the company," IREDA said in an exchange filing.IREDA share priceIREDA shares have declined more than 1% over the past week and 5% over the past month. The stock has fallen over 8% so far in 2026 and nearly 27% over the past year.The company currently has a market capitalisation of over Rs 35,930 crore and a price-to-earnings (P/E) ratio of nearly 20x.(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own and do not represent the views of The Economic Times.)

Share of term deposits below 7% jumps as banks reprice liabilities

Mumbai: The share of bank term deposits earning less than 7% rose to 61.8% in fiscal 2025-26 from 27.3% a year earlier, signalling a repricing of liabilities following cumulative policy rate cuts of 125 basis points since February 2025, Reserve Bank of India data showed. Deposits with a tenure of up to one year fell to 8.8% from 16.7% over the same period, as depositors shifted towards longer maturities in search of better returns, the data showed.Deposits with a maturity of one to three years rose to 69.8% at end-March 2026 from 50.4% in March 2022, suggesting depositors increasingly locked in funds for medium tenures amid evolving rate expectations.The data also pointed to broader structural shifts in deposit composition, with the share of term deposits in overall deposits rising to 61.6% in March 2026 from 55.2% in March 2022, while the proportion of savings deposits declined to 28.7% from 34.6% in the same period.131431518Deposit growth accelerated to 11.5% year-on-year at end-March 2026 from 10.6% a year earlier, with public sector banks accounting for 50.8% of incremental deposits and private banks contributing 38.6%.Households remained the largest contributors, accounting for 59.3% of total deposits, even as the share of non-financial entities and financial corporations edged up, indicating gradual diversification in deposit sources.Large-value deposits continued to dominate, with term deposits of ₹1 crore and above accounting for 46.3% of the total. Deposits of ₹5 crore and above alone made up 34.8%, while deposits of up to ₹5 lakh accounted for 17.8%.The share of senior citizens in deposits stood at 20% and has remained broadly stable over the past four years, the central bank data showed.

Yatra founders explore stake sale

New Delhi: Travel portal Yatra Online's founders have opened discussions to sell a controlling stake with feelers having been sent to competitors and other potential buyers, people aware of the development said.The companies they have approached include Makemytrip, Paytm Travel, Rapido, Ixigo and a private equity fund, the people said. Yatra is working with advisors on the sale, they said. Suitors could submit non-binding term sheets to formally document their interest next week. Any formal offers will be subject to due diligence, they said.Also Read: Yatra bets on corporate travel as India’s business travel market heads toward $20 billion by FY27Yatra's founders include Dhruv Shringi, Manish Amin and Sabina Chopra. Shringi, also the chairman, said "there is no substance" to this information."We just reported record profits for the year, hence no reason for anyone to sell," Shringi said when ET sought his comment. "This would anyways not be the right time to do something in the travel industry," he said. The other two founders of Mumbai- and New York-listed Yatra could not be reached for comment. Emailed queries to the company did not elicit a response till press time Sunday.Ixigo and Paytm denied any interest in purchasing a controlling stake in Yatra. Makemytrip and Rapido said they would not comment on "market rumours"."That said, our inorganic growth playbook of investing in niche organisations across travel-adjacent categories has not changed," said a MakeMyTrip spokesperson.Also Read: Indians may be roaming closer to home because of a war far away"Online travel booking is becoming a crowded market. It looks ripe for consolidation," said a fund manager at an international investment firm on condition of anonymity.Yatra Online refers to itself as India's largest corporate travel services provider. The company reported consolidated total income from operations of ₹199.3 crore for the fourth quarter ended March 31, 2026, down from ₹228.5 crore a year earlier. Net profit for the quarter fell to ₹8.2 crore from ₹15.2 crore.On an annual basis, the company reported total income from operations of ₹1,032 crore for fiscal year 2026, and a net profit of ₹47 crore. Yatra said it reported its most profitable year in its history despite some "very significant" macro headwinds that impacted three months of the year.CEO Siddhartha Gupta said that its quarter four was affected by geopolitical disruptions and war-related uncertainty, which weighed on international travel demand, particularly in MICE (meetings, incentives, conferences & exhibitions).

Localisation lens on 500 most-imported items

New Delhi: The government is examining 500-odd heavily imported products including machinery, fertilisers, chemicals, cotton staple fibre, plastics, silicon wafers and carbon fibres, to identify localisation opportunities and reduce dependence on overseas supply. The commerce and industry ministry is collating data from different ministries on import dependence, estimated time and capital investment required to achieve commercially viable domestic manufacturing capability, and national strategic relevance of these products, officials privy to the development said.The idea is to reduce the country's import bill and build supply resilience amid the ongoing West Asia crisis.The Department for Promotion of Industry and Internal Trade (DPIIT) is "analysing data such as production capacity and bottlenecks faced by industry," one of the officials said.131428063The department has sought information such as the extent to which domestic demand for the product is met through imports, indicating vulnerability to external supply and the need for localisation, and the importance of the product in ensuring continuity, resilience, and stability of domestic manufacturing and essential downstream sectors.The exercise also covers harvester-threshers, parts of turbo jets and certain graphite, officials said.DPIIT is likely to shortlist around 100 items where the imports are high but the country has capacity to produce them locally, another person aware of the development said.High import dependence means where 60% or more of the domestic demand for the product is met through imports while medium is where imports are 30-60%. "Electronics and chemicals are two key sectors where imports are huge but the potential to export is also significant," another official said.India's goods import bill stood at $774.98 billion in FY26, led by oil at $174 billion, electronics at $116.17 billion, and gold at $72 billion. The country also imported organic and inorganic chemicals worth $28 billion last fiscal.Makeup preparations, dishwashers, industrial valves and certain silicon wafers also figure in the list of the products whose imports are being studied.The exercise comes after Prime Minister Narendra Modi urged citizens to help preserve foreign exchange and contain the country's rising import bill amid the ongoing conflict in West Asia.

Japan raises PR, residency fee caps

Japan has increased the maximum fees that foreign nationals may be charged for renewing or changing their residency status, with the new cap set at 100,000 yen ($630) for standard residency permits and 300,000 yen for permanent residency applications. according to a report by Nikkei Asia. The measure was approved by the Japanese parliament on Friday as the country prepares for a growing foreign resident population and plans new integration programmes. The previous upper limit for residency renewal or status-change fees was 10,000 yen. According to Japan's Immigration Services Agency, the revised fee structure reflects services provided to foreign residents. While the law sets the maximum amounts, the actual fees will be decided later through a cabinet order. Under the proposed structure, fees for standard residency permits will vary depending on the length of stay. A three-month residency period is expected to cost about 10,000 yen, while a five-year permit could cost around 70,000 yen. The current fee for in-person renewal applications is 6,000 yen regardless of the duration of stay. Additional revenue to fund integration measures The fee for permanent residency applications is expected to rise to about 200,000 yen. The government said reductions or exemptions will be available for applicants facing financial hardship, and the Immigration Services Agency plans to issue guidelines on eligibility for such relief. The higher fees could generate up to 90 billion yen in additional revenue. Japan's foreign resident population exceeded 4 million at the end of 2025, and the government said the funds will be used to strengthen measures that help foreign residents adapt to life in the country. Planned initiatives include expanding consultation services offered by local governments, improving Japanese-language education and supporting programmes that teach daily-life rules and customs. The government intends to introduce these educational programmes in phases beginning in fiscal 2028. The revenue will also help cover the costs of addressing illegal residency cases. Previously, fees collected were limited to covering administrative expenses such as personnel costs. Faster rollout of JESTA screening system The legal revisions also include changes affecting short-term visitors. Japan will introduce the Japan Electronic System for Travel Authorization (JESTA) as early as fiscal 2028, two years earlier than originally planned, as per Nikkei Asia report. Under the system, travellers from visa-exempt countries will need to submit information online before departure, including their travel purpose, occupation and accommodation details. Authorities will use the information to screen travellers before arrival. Airlines will be required to deny boarding to passengers who do not obtain authorization. The government said the system is expected to help prevent illegal stays while simplifying immigration procedures and reducing waiting times at airports. The legislation faced opposition from the Constitutional Democratic Party and the Japanese Communist Party, which argued that the fee increases would place an excessive burden on foreign residents. However, the measure was passed by parliament and is set to take effect as Japan continues to adjust its immigration and residency policies amid rising foreign arrivals and residency numbers.

Inflation watch intensifies as RBI nears

India needs to remain watchful on the inflation front as rising fuel prices, a weakening rupee and the risk of a below-normal monsoon threaten to rekindle price pressures, the finance ministry said just days before the Reserve Bank of India's monetary policy decision.In its monthly economic review for May, the Department of Economic Affairs said the economy remains "cautiously resilient", with domestic fundamentals largely holding up despite growing global and domestic uncertainties.Also Read: RBI to hold rates in June; majority now expect hike by year-end: Poll"The confluence of elevated global energy prices, a depreciating rupee, rising upstream cost pressures and the prospect of a below-normal monsoon calls for sustained policy vigilance," the ministry said.The assessment comes ahead of the RBI's Monetary Policy Committee meeting next week, with the policy decision due on June 5. Expectations of a tighter policy stance have increased amid concerns over inflationary pressures and efforts to support the rupee, which touched a record low of nearly 97 against the US dollar earlier this month.While retail inflation remained below the RBI's 4% target in April, the ministry cautioned that wholesale price pressures have accelerated sharply, raising the risk that higher input costs could eventually feed into consumer prices.Producer inflation climbed to a more than three-and-a-half-year high in April as elevated energy prices pushed up manufacturing costs. Data from the Ministry of Commerce and Industry showed the wholesale price index rose 8.30% year-on-year, up from 3.88% in March and well above economists' expectations of 5.50%.Also Read: RBI’s currency printing cost falls 23.5% in FY26 despite rise in cash circulationThe ministry also warned that the fallout from the West Asia conflict poses a significant risk to India's inflation and external-sector outlook, particularly through disruptions to energy supplies."The duration of the Strait of Hormuz disruption remains the 'single most consequential variable for India's external and price outlook'," it said.According to the review, higher crude oil prices, tighter global financial conditions and slowing world growth are creating headwinds for the Indian economy that cannot be fully insulated from external shocks."Policy will need to remain agile across monetary, fiscal, and structural dimensions to navigate this period of compounded uncertainty, external and climatic, while keeping medium-term growth objectives firmly in view," the ministry said.

Indian banks' RoA to dip 10-15 bps this fiscal

Infosys CEO's compensation rises 2.5% to nearly $8.7 million in fiscal 2026

Earlier this month, Indian IT stocks fell to their lowest point in three years after OpenAI announced a new services-led venture

RBI efforts boost rupee usage, yet global adoption remains limited

Mumbai: The rupee's use for invoicing and settlement of international trade saw only modest growth in the last two fiscal years, the central bank's annual report showed, reflecting the ground India needs to further cover to internationalise its currency in a global trading order still dominated by the US dollar.Former RBI Deputy Governor, T Rabi Sankar, had said in October 2025 that invoicing and settling trade in rupees was a key step towards India's ambition of becoming a developed economy.131402779To encourage greater use of the rupee in cross-border trade, the RBI has introduced measures such as permitting correspondent banks in partner countries to open Special Rupee Vostro Accounts with Indian banks, alongside local currency settlement arrangements with several countries.

RBI warns West Asia war may hit India growth

Mumbai: A prolonged West Asia conflict represents a key downside risk to India's economic outlook according to the Reserve Bank of India (RBI), even as it projected a lower real gross domestic product (GDP) growth of 6.9% for 2026-27 in its annual report compared with 7.6% estimated for the previous financial year.The central bank said the impact of the conflict is likely to remain contained in the near term but warned that an escalation could derail India's otherwise positive growth trajectory."Going forward, India's growth outlook remains positive, though the West Asia conflict and the attendant risks of elevated energy prices, supply chain disruptions, financial market volatility, uncertainty surrounding global trade policies and weather-related disruptions could pose headwinds to growth and inflation in the short run," the Reserve Bank said.Also Read: Iran war - PSBs asked to stay preparedPositive Macro OutlookIt listed healthy corporate and bank balance sheets, government's continued thrust on capital expenditure and the implementation of trade agreements with key partners as positives to help sustain investment and growth momentum."Nevertheless, in a highly uncertain global environment, continuous assessment of the evolving developments is warranted to frame the appropriate policy response on an ongoing basis," the report said.131398139The central bank said that although portfolio flows exhibited a net outflow in 2025-26, strong buffers in the form of ample foreign exchange reserves and modest external debt liabilities continue to impart strength to the external sector, contributing to overall macroeconomic and financial stability.Adequate food grain stocks, sufficient reservoir levels and stable agricultural prospects despite possible El Nino conditions and above-normal summer temperature will keep inflation aligned to the target in 2026-27, according to the RBI. However, upside risks may emanate from a surge in global fuel and commodity prices amid geopolitical tensions, potential spillovers to input and wage costs and volatility in exchange rates.Also Read: India-US trade pact may be weeks away - US Ambassador to India Sergio GorThe central bank projected consumer price inflation for 2026-27 at 4.6%, with risks tilted to the upside, significantly higher than its revised estimate of 3.7% for the previous fiscal.Pressure on BondsDomestic bond yields could face upward pressure if the global monetary easing cycle stalls or reverses in response to persistent oil price shocks amid fragile conditions in West Asia, it said.Geopolitical risk has re-emerged as the dominant drag on global growth in 2026, according to the RBI. "In IMF's baseline scenario, the global economy is projected to grow by 3.1% in 2026 (as against the earlier projection of 3.3% in January), while global merchandise and services trade volume is expected to decelerate to 2.8% in 2026. Further intensification of the conflict, its prolongation or widening geographical spread, if any, remain the key downside risks to the global economic outlook," the report said."However, the government's commitment to fiscal consolidation, along with the liquidity injection measures by the Reserve Bank, is expected to contain the upward pressure on yields. Equity market dynamics would be conditioned by evolving geopolitical developments, global financial market volatility and foreign portfolio investment flows; a deterioration in risk sentiment alongside strengthening of the US dollar could trigger capital outflows," said the RBI's annual report. "At the same time, ongoing efforts to expand local currency settlement framework are expected to further advance rupee based cross-border transactions."

From Ahinda to Mekedatu: 5 challenges before Karnataka's new CM

Karnataka's new Congress government, led by DK Shivakumar, faces a critical transition. Key challenges include cabinet formation balancing caste and regional demands, sustaining welfare guarantees amid fiscal strain, and navigating the sensitive Mekedatu reservoir dispute with Tamil Nadu. Shivakumar must also retain the crucial Ahinda support base and ensure development extends beyond Bengaluru to rural areas.

RBI mulls cross-border CBDC transactions

Mumbai: The Reserve Bank will explore the use of CBDC in cross-border transactions besides expanding the digital rupee to more direct benefit transfer schemes and domestic retail space during the current fiscal year. During 2025-26, the central bank launched multiple Central Bank Digital Currency (CBDC) pilots under direct benefit transfer (DBT) schemes of the Centre and state governments, leveraging the programmability capability of CBDCs, said the RBI's annual report for 2025-26. On cross-border payments, the RBI signed memorandum of understanding (MoU) on digital asset collaboration with the Monetary Authority of Singapore (MAS) in 2025-26. Also, bilateral discussions with MAS and the Central Bank of the UAE (CBUAE) were held for operationalising a cross-border CBDC pilot. The Reserve Bank also joined multilateral BIS-Innovation Hub-led initiatives, which are focused on enhancing cross-border payments through CBDCs. The Reserve Bank plans to expand the CBDC pilot to cover new use cases under DBT schemes and the domestic retail space, while exploring additional pilots on tokenisation of financial assets and widening participant coverage. On cross-border payments, the RBI intends to operationalise bilateral CBDC pilots with select use cases and deepen engagement in multilateral projects. "Exploring a bilateral/multilateral crossborder CBDC pilot with select use cases and engaging in multilateral projects on cross-border payments on technical and governance standards" is one of the RBI's agenda for FY27. Providing a framework for testing of innovative products/services leveraging CBDC under the CBDC and Asset Tokenisation (CAT) sandbox is also on the RBI's to-do list during the current fiscal year. The value of bank notes in circulation in digital form CBDC-R stood at Rs 771.66 crore as on March 31, 2026, as compared to Rs 1,016.46 crore as on March 31, 2025.

IndiGo posts ₹2,536.9 crore loss in March quarter of FY26

Total income in the fourth quarter of the 2025-26 fiscal rose over 3 per cent to ₹23,830.7 crore from ₹23,097.5 crore in the same period a year ago.

India insurers seek doubling of tax-free limit

MUMBAI: Indian life insurers have asked the government to double the tax-free limit for insurance policies from 500,000 rupees ($5,232), hoping for a boost to inflows into these funds, three sources directly aware of the matter said. New tax limits were imposed in February 2023, applicable to all insurance schemes except unit-linked insurance plans (ULIPs). Since then, inflows into ‌non-ULIP schemes have ⁠risen ⁠a modest 2% and 5% for fiscal years 2024 and 2025, respectively. This is sharply lower than the 13% and 18% growth in the previous two years, data showed. The flows for fiscal 2026 grew 16%, largely due to a reduction in the goods and services tax. Stronger inflows into such funds will boost demand for ultra-long bonds - which these funds heavily invest in - at a time when the federal and state ⁠governments' supply ‌has risen, the sources said, declining to be identified as they are not authorised to speak to the media. Similar requests had been made after ⁠new tax limits were imposed. The Life Insurance Council and the Insurance Regulatory and Development Authority of India did not reply to a Reuters email seeking comment. Slower inflows have curbed demand for longer-maturity debt, along with pushing up yields on 30-year and above maturity papers, faster than the 10-year note. The Indian government has reduced the share of ultra-long bonds in April-September borrowing to 25%, sharply lower than 30% for the second half of fiscal 2026 and ‌35% for the preceding six months. It would be difficult to maintain supply at this level, and the government will have to increase it to at least 30% in October-March, according ⁠to traders. "Increasing the tax exemption limit is a necessary first step to unlock the deep pool of long-term capital required to anchor India's fiscal expansion," said Arun Srinivasan, chief - fixed income, ICICI Prudential Life Insurance. "Implementing this measure will incentivise long-term retail and institutional savings, offering critical domestic support for the state's ultra-long-term borrowing needs," he said. The appeal was made via a letter from the Life Insurance Council, a forum which represents insurers, to the government earlier this month, the sources said.