In this episode of State of the Economy, Shishir Sinha speaks with Ranen Banerjee, Leader, Economic Advisory Services at PwC India, on what the latest high-frequency indicators reveal. April’s record GST collections are increasingly driven by imports, pointing to softer domestic demand.

The Podcast looks at the impact of tariffs and Middle East tensions on exports, input costs and MSMEs, and why consumption is likely to weaken through Q1. Inflation may stay near recent levels for now, but risks remain if fuel costs are passed through.

Banerjee also explains why fiscal stress may not show up immediately, but could emerge later in the year. The episode examines the resilience in auto sales — supported by rural demand and premiumisation — and whether that can hold as broader headwinds build.

Published on May 2, 2026