The global economy is facing various challenges, including trade tensions and oil price volatility. The US has imposed a 25% tariff on India, as well as additional penalties for buying Russian oil, which has put India at a disadvantage compared to other countries that have struck trade deals with the US. India has refused to concede to the US’s demand for greater access to its agriculture and dairy sectors, leading to a stalemate in trade negotiations.
The US’s threats of secondary sanctions on Russia have led to a sharp rise in oil prices, with Brent crude oil prices jumping to nearly $73 per barrel. The Organization of the Petroleum Exporting Countries (Opec) is expected to increase output, but policy uncertainties will keep oil prices volatile. The US has also sanctioned 20 entities, including six from India, for petroleum, petroleum products, and petrochemical trade with Iran.
In other news, Tata Consultancy Services (TCS) plans to lay off 12,000 employees worldwide, comprising around 2% of its workforce, as part of its strategy to become a “future-ready organisation” focusing on AI, tech investment, and workforce realignment. This has sparked worries of similar moves by other IT giants facing uncertainty in their biggest market, the US.
Despite challenges, the global economy is showing resilience, with the International Monetary Fund (IMF) raising its 2025 global growth projection to 3% from 2.8% in April. The agency cited stronger front-loading of trade, lower effective US tariffs, and improved financial conditions as key drivers in the first half of the year. However, risks to projections remain tilted to the downside.
India’s coworking sector is expanding rapidly, with Awfis, Smartworks, and IndiQube now listed, and WeWork India expected to go public in August. The industry has scaled rapidly, with flexible office supply in top cities expected to rise to 121 million sq ft by FY2027 from 85 million sq ft in FY25.
Tata Motors has announced plans to acquire Italian truck and bus maker Iveco for $4.36 billion, its largest acquisition ever, amid plans to demerge its commercial and passenger vehicle business. The company is looking to boost its commercial vehicle business with the acquisition, which is expected to conclude by April-June 2026.
In India’s markets, large firms dominate, with the top 10% by revenue accounting for more than 90% of net profits. However, smaller firms had gained ground during a broader recovery after the pandemic, but this comeback is now running out of steam. In FY25, companies outside the top 10% made up 7.3% of aggregate net profit, down from 10.4% in FY23.
Finally, a survey report by the Udaiti Foundation and Quess Corp has found that low income, poor work culture, and safety fears are among the top reasons why women have shorter tenures in India’s blue- and grey-collar jobs. Despite the growing numbers of women workers, more than half of respondents said they planned to leave the workforce within a year.