India in September 2026: the most important developments in economy
In September 2026, India's economy combined strong growth figures with pressure from high oil prices. Official data released on September 1 showed GDP growth of 7.8% for the April-June quarter, which the IMF welcomed, though India's global ranking was reported to have fallen to sixth. Through the month the rupee weakened, the Reserve Bank of India intervened in currency and bond markets, and Indian shares fell to a six-week low early on and extended a losing run at month end. Foreign investors withdrew $3.2 billion in September and the benchmark index had its worst month since March. Consumer demand stayed visible: Apple released the iPhone 18 Pro and Pro Max in India on September 18 to long queues, and reports said Apple Pay would launch with Axis Bank.
The largest policy issue was Russian oil. The US Congress passed a Russia sanctions bill, and President Trump signed it on September 18, giving him authority to impose tariffs of up to 100% on countries buying Russian oil, including India and China. India said it would take all necessary measures to protect its trade interests and stressed energy security for its 1.4 billion people. Ukrainian President Zelensky called for pressure on India over its purchases. Data showed Russia remained India's top supplier in September despite lower volumes, while India's oil import bill rose 48% and reports said refiners might cut Russian cargoes. India said it is waiting for a comparative tariff advantage before concluding a trade deal with the US.
A second dispute concerned digital payments. India introduced a merchant fee on UPI payments on September 16, with charges of up to 300 rupees on transactions above 2,000 rupees and no charge below that level. Retailers and petrol pump dealers threatened to prefer cash, and opposition leaders Rahul Gandhi and Mallikarjun Kharge called it a "Modi tax". The government rejected claims of foreign influence behind the fee.
Investment announcements continued. At SEMICON India on September 17 Prime Minister Modi presented a $13.5 billion plan to make India a chip manufacturing hub, with $12 billion in pledges and a $5 billion commitment from Applied Materials. TCS announced up to $7.4 billion for an AI data center campus, the UAE planned a further $25 billion, and Essar announced a $15 billion US steel plant. The National Stock Exchange began trading on September 24. A boardroom dispute at Tata Group drew wide coverage, and Kenya ordered Tata Chemicals to leave.
by WorldBrief & Maksim Micheliov | AI-generated summary
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