India in July 2026: the most important developments in economy
India's economy in July 2026 was dominated by trade with the United States. On July 11 India asked Washington to drop a proposed 12.5% tariff, and on July 14 it announced a ban on imports made with forced labor. On July 24 the US imposed a 10% tariff on all Indian exports under Section 301 over forced labor concerns, lower than the rate first discussed. A separate US Senate bill seeking 100% tariffs on India and other buyers of Russian oil advanced on July 29, and on July 22 President Donald Trump announced plans for tariffs of up to 200% on generic drugs. The India-UK trade pact took effect on July 15. India's refiners kept buying Russian oil at near-record levels, and India sold gasoline to Russia.
Energy and currency pressure came second. The Sensex fell nearly 1,700 points on July 8 after Trump hinted at resuming war with Iran, and disruptions in the Strait of Hormuz widened India's goods trade deficit. Inflation rose above the central bank's target on July 13 for the first time in over a year. The rupee neared a record low, trading around 96 to the dollar, and the central bank sold about $7 billion to defend it. Economists cut their growth forecasts. India moved to build strategic reserves, including an ONGC plan for 1.75 million tonnes of oil storage.
Infrastructure and technology were the third theme. Prime Minister Narendra Modi flagged off India's first hydrogen-powered train on July 17 on an 89-kilometre route in Haryana. On July 18 Skyroot Aerospace launched Vikram-1, India's first private orbital rocket, which reached orbit. India and Australia finalised an agreement on July 9 for Australian uranium exports to resume. The government approved $13.3 billion for a new semiconductor push, and smartphone exports hit a record $9.84 billion.
Separately, a tunnel collapse at a hydropower project killed 20 people and left five missing, and a separate blast in another tunnel killed 12 and left 13 missing.
by WorldBrief & Maksim Micheliov | AI-generated summary
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