India in April 2026: the most important developments in economy
India's economy in April 2026 was dominated by the energy shock from the Iran war and disruption in the Strait of Hormuz. Eight Indian-flagged vessels had crossed the Strait by April 6 since early March, and the first to cross after the US-Iran ceasefire did so on April 11. India resumed buying Iranian oil after seven years and received a 4 million barrel cargo on April 15, with refiners reported to be paying in Chinese yuan. Imports of Russian crude rose 90% in March and reached record volumes. The US said on April 16 that it would not renew its waiver for Indian purchases of Russian oil, then extended it to May 16. Reliance capped fuel sales per pump, India raised export taxes on diesel and jet fuel, and fertiliser output fell by a quarter. Amid these pressures, South Korea and India agreed at an April 20 summit to double bilateral trade to $54 billion by 2030 and to deepen cooperation in AI and semiconductor supply chains.
The strain showed in markets and forecasts. India's growth forecast was cut to 6%, the central bank held rates on April 8 and later warned of inflation, and global funds pulled money from Indian stocks at a record pace. The rupee closed at a record low on April 29. Air India's CEO Campbell Wilson resigned before completing his term as the airline reported a $2.4 billion loss and asked its owners Tata and Singapore Airlines for funds. The central bank revoked the licence of Paytm Payments Bank.
Trade and investment deals continued. An Indian delegation went to Washington to finalise a trade deal that reports called almost done. India and New Zealand signed a free trade agreement removing duties on all Indian exports. China overtook the US as India's largest trading partner in the year to March, with a trade gap of $112 billion. Sun Pharma agreed to buy Organon for $12 billion, Google broke ground on a $15 billion AI hub, and India's first fast breeder nuclear reactor reached criticality on April 7.
by WorldBrief & Maksim Micheliov | AI-generated summary
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