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Good Morning India 🇮🇳
In peak courtroom theatre, CJI Gavai lightened heavy talk on judicial restraint by recalling Nagpur’s halls once overflowing like a Hema Malini fan club because even judges have a Dream Girl moment. Takeaway: Who knew cheque-bounce cases came with Bollywood callbacks and moral lessons
Now, let’s get into the dispatch! 🚀
Today’s reading time is 5 mins.
DEBT 💸
India’s External Debt rises to $736.3 billion in FY25
Image credits: CEIC
According to the latest data from the RBI, India’s external debt rose by 10% to touch $736.3 billion by March 2025, up from $668.8 billion a year earlier. The debt-to-GDP ratio also edged up slightly to 19.1%, compared to 18.5% the previous year. However, part of this increase stems from a $5.3 billion valuation impact caused by the appreciation of the US dollar against the rupee and other major currencies.
Sector-wise breakdown
The non-financial corporate sector holds the largest share, with borrowings amounting to $261.7 billion. Deposit-taking institutions, excluding the central bank, accounted for $202.1 billion, while the government’s share stood at $168.4 billion.
Duration-wise allocation
In terms of duration, long-term external debt increased to $601.9 billion, reinforcing India’s reliance on stable, long-horizon borrowing. Meanwhile, short-term debt as a share of total liabilities dipped to 18.3%, down from 19.1% the year before.
Instruments used for the debt
As for the composition, loans remained the largest component of India’s external debt, making up 34% of the total. This was followed by currency and deposits at 22.8%, trade credit and advances at 17.8%, and debt securities at 17.7%.
Importantly, India’s rising external debt isn’t happening in isolation; it mirrors a broader global trend. In 2023 alone, developing nations saw their cumulative external debt hit a record $11.4 trillion, much of it driven by post-pandemic recovery efforts and infrastructure pushes.
The big question is: Will this borrowing help build a stronger, more inclusive economy, or weigh it down? If invested strategically in infrastructure, innovation, and long-term development, this debt could fuel India’s next major leap. If not, it risks becoming a financial burden that slows down otherwise promising momentum.
ECONOMY 📈🇮🇳
India’s private consumption touches new high, boosting GDP: Finance Ministry report
Image credits: Pexels
India isn’t just growing, it's spending, exporting, and sustaining economic momentum through a surge in private consumption. According to a report released by the Finance Ministry, private consumption rose to 61.4% of GDP in FY25, marking the second-highest level in the last two decades. This renewed appetite for spending may just be the secret sauce to propelling India’s economy further.
What’s Fueling the Growth?
A significant rebound in rural demand has played a key role in lifting consumption figures. Private Final Consumption Expenditure (PFCE) grew by 7.2% in FY25, up from 5.6% in FY24, a notable jump indicating renewed confidence among households. On the trade front, India saw a positive swing in its external balance. Exports rose by 6.3% in FY25, a strong recovery from just 2.2% growth the previous year. Even more encouragingly, imports fell by 3.7%, reversing the 13.8% spike seen in FY24.
This combination of rising exports and restrained imports has contributed to healthier trade dynamics, offering further cushion to India’s economic growth. The momentum that gathered in the final quarter of FY25 appears to be continuing, with real GDP growth accelerating to 7.4% during that period.
The Road Ahead
Chief Economic Adviser (CEA) V. Anantha Nageswaran believes India is well-positioned for a phase of low inflation and stable growth, underpinned by prudent monetary policy. However, while the numbers point to resilience, the next challenge is to ensure this consumer-driven momentum transitions into long-term capital formation.
After all, sustained growth isn't just about spending more, it’s about building better. If India can turn its consumption boom into investment in infrastructure, industry, and innovation, the current surge could be just the beginning of a broader economic leap.
BUSINESS INDIA
DHANDA HAI YEH!
India’s agriculture boom: As per government data, India's agriculture and allied farm output increased to ₹ 29.49 lakh crore in FY24, up by 54.6% from FY12. The crop sector leads, contributing 54.1% (in 2023-24) of the value, reflecting robust growth.
India’s account surplus: Despite a widening trade deficit, India achieved a $13.5 billion current account surplus (1.3% GDP) in Jan-Mar FY25 as per RBI reports. This marks a reversal from deficit, largely driven by strong services and remittance inflows.
Meesho’s IPO drawing closer: E-commerce giant Meesho’s shareholders approved raising ₹4,250 crore via an IPO after its US-to-India domicile shift. This move positions the e-commerce firm for a bumper listing, becoming the first horizontal e-commerce company to list in India.
What is a Horizontal E-commerce marketplace? Read here to know more.Huge surge in India’s oil imports: India's oil imports from the US surged over 270% to 6.31 million tonnes in Jan-Apr 2025. This $3.78 billion jump boosts the US's share to 7% in the backdrop of India’s attempt to finalise an interim trade deal with the US by July 9.
Starlink nears India Launch: Elon Musk’s Starlink is ready to launch in India after receiving final regulatory approval. It's now set to be the third satcom player after Eutelsat OneWeb, and Jio Satellite, both of whom have secured similar approvals.
WORLD: BUSINESS AND GEOPOLITICS 🌍
KYA CHAL RAHA HAI?
US Supreme Court limits nationwide injunctions: In a landmark decision, the US Supreme Court ruled to restrict the use of nationwide injunctions by lower courts. This comes as President Donald Trump signals a return to hardline immigration policies, including ending birthright citizenship. Meanwhile, 22 democratic-led led states had it temporarily blocked until now.
Trump’s trade tantrum: President Donald Trump suspended trade talks with Canada due to its plans to continue with its new tech firm tax (a digital service tax) starting this Monday. Trump labelled it "a direct and blatant attack”.
Warren Buffett’s record donation: Billionaire Warren Buffett donates a record $6 billion (or 12.36 million Berkshire Class B shares) to the Gates Foundation and four family charities on June 27, 2025, boosting his total giving to over $60 billion. He still owns 13.8% of Berkshire.
North Korea’s tourism push: North Korea will open its largest tourist destination as Kim Jong Un inaugurated the Wonsan-Kalma coastal tourist zone, boasting of hotels and facilities for nearly 20,000 guests. It will open up to domestic tourists on 1 July for domestic tourists, and to a group of Russian tourists on 7 July.
Russia-Ukraine War: Russia and Ukraine exchanged more long-range drone attacks, with Ukraine claiming 4 Su-34 jets were destroyed. Meanwhile, Russian President Vladimir Putin said Moscow is ready for a fresh round of direct peace talks in Istanbul.
Aur Batao: News from across India 📰
Manipur Future: Former Manipur CM Biren Singh confirms efforts to form a popular government are underway. The state has been under President's Rule since 13 February 2025, after ethnic violence eruptions in May 2023, in which over 260 people have been killed and thousands displaced.
Indus Water Dispute: Recently, India rejected a procedural ruling on the Indus Waters Treaty (IWT) by the Court of Arbitration, Hague, deeming it ‘Illegal’. India put the treaty on hold after the Pahalgam terror attack.
Prada – Kolhapuri chappal controversy takes new twist: Prada finally confirms that they have gone desi this time, acknowledging that the Kolhapuri chappals inspired their 2026 men's footwear after the controversy. They committed to engage local artisans going forward.
Illegal crackdowns: Assam and Mizoram propose strict new rules to curb illegal immigration from Bangladesh and Myanmar. Assam restricts Aadhaar for adults, while Mizoram targets Myanmar nationals' IDs, following a crackdown on 2000+ immigrants.
Bihar scripts history: On June 28, 2025, Bihar became India's first state to use mobile e-voting for municipal polls. It helps seniors, the disabled, and pregnant women vote via a secure app/website.
Sports and Entertainment
Emerging Indian Chess star’s new milestone: Grandmaster R. Praggnanandhaa became India's top-ranked chess player in the live ratings after winning the UzChess Cup Masters 2025. His current live rating soared to 2778.3, making him World No 4, his highest ever ranking.
ICC introduces new rules: The ICC rolls out new cricket rules for men’s international cricket, effective from July 2. A stop clock will be mandatory in Test/ODI to maintain speed play. Also, a new wide ball rule with a degree of leniency is to be trialled from October.
Neeraj Chopra reclaims top spot: Neeraj Chopra reclaims the world number 1 rank in javelin throw after 9 months. The reigning world champion climbed to the top of the ladder with 1445 points.
Haaland reaches the 300 mark: Prolific striker Erling Haaland bagged his 300th goal for club and country, achieving the feat in just 370 games, faster than some of the top players, including Cristiano Ronaldo (554 games), Lionel Messi (418 games) and Kylian Mbappe (409 games). Seems like the Man City striker likes eating milestones for breakfast.
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