The first four months of FY26 have started on a weak note. Combined government receipts are likely to have grown by a modest 7% YoY, with tax revenue declining in the last 2 months. This is largely due to the central government, as the state’s own tax revenues have continued to grow in the mid-single digits.

In contrast to this, the combined government expenditure has grown in the mid-double-digits, driven by a 25% growth in capital expenditure. Once again, the expenditure growth for the Centre has far outpaced the expenditure growth for the States.

Consequently, the combined government fiscal deficit has grown by over 50% YoY, with the Centre’s fiscal deficit growing almost 70% YoY. In contrast, the deficit for the States has grown by 37%. As we discuss below there are some transitory factors at play which are distorting the Centre’s finances.

Full report with more data and lots of charts can be accessed from our website [paywall]

August witnessed a broad-based improvement in sales momentum compared to July 2025. Trucks & Other Goods Vehicles rebounded from a -2% YoY decline in July to +5% YoY growth in August, reflecting improved logistics demand.

Tractors led the market, accelerating sharply from +10% YoY in July to +30% YoY in August. 2Ws bounced back from a -6% YoY decline in July to +2% YoY growth in August.

The decline in Construction Vehicles eased from -31% in July to -25% in August, indicating a mild recovery.

Cars, SUVs experienced a slight moderation in YoY growth during August compared to July.

The full report with more data and lots of charts can be accessed from our website [paywall]

After a record-breaking 2024, mutual funds have kept up the momentum in 2025. Net inflows of nearly ₹6.0 trillion in the first half of the year already surpass the full-year totals of every year except 2024. This puts the industry on course for another exceptional result.

The relative picture is even stronger. FY25 saw net inflows in mutual funds exceed 40% of incremental bank deposits, the highest share on record and well above the 2017–18 peaks. Mutual funds are now a meaningful competitor to banks in mobilising savings.

This is mirrored in assets. Industry AUM crossed ₹74 trillion by June 2025, expanding nearly 25% YoY. Mutual fund AUM now totals almost a third of bank deposits. Even with some short-term volatility, there’s a clear direction: mutual funds are embedding themselves firmly in household portfolios.

The full report with more data and lots of charts is accessible from our website [paywall]