ICRIER presents the first edition of the India Macro Monitor, its quarterly assessment of India’s macroeconomic landscape. This edition examines developments across economic activity, inflation, employment, the external sector, and financial markets, with a focus on both high-frequency indicators and emerging macroeconomic signals. The key findings from this edition are as follows: (i) Domestic economic activity remained resilient in Q1 FY27, supported by robust consumption and a strengthening investment cycle; (ii) Industrial activity remained strong, with capital goods production and imports pointing to sustained investment momentum despite a weakening external environment; (iii) Inflationary pressures have re-emerged, with headline CPI rising above the RBI’s target and the widening WPI–CPI gap pointing to emerging pipeline pressures; (iv) Labour market conditions remained stable but showed signs of losing momentum, particularly among young workers; and (v) External buffers remained comfortable despite a widening trade deficit, although weak export demand and persistent rupee underperformance highlight emerging external vulnerabilities. Financial conditions remained supportive, with ample liquidity, easing bond yields, and robust credit growth. Through its data-driven analysis, the India Macro Monitor aims to provide policymakers, researchers, and other stakeholders with a timely assessment of India’s evolving macroeconomic conditions.
