discretionary spending

In fact, ⁠IT has been the worst-performing major sector in the Indian market over the past 12-18 months. In May, 2026, the Nifty IT index touched a near 3-year low, losing more than a fourth of its value since the start of the year.

Says UCC Will Strengthen Social Harmony & Gender Equality

Every Re 1 hike in petrol, diesel, CNG, and LPG costs feeds into inflationary pressures in the economy, and also indirectly impacts discretionary spending, hence hitting growth channels.

Summer travel is splitting along income lines as soaring airfares and hotel costs deter budget-conscious families. Wealthier Americans continue to splurge, while middle and lower-income groups are cutting back or delaying trips. This K-shaped trend sees fewer Americans planning vacations, with even those earning up to $200,000 annually reducing travel plans.

India's transportation fuel demand growth is set for a sharp slowdown in late 2026. Higher prices, government conservation efforts, and a weakening rupee are impacting mobility. Analysts have significantly cut growth forecasts, with petrol demand facing the steepest decline due to reduced commuting and discretionary travel.

Air India assures employees no layoffs are anticipated despite financial strain from the Middle East conflict. However, annual salary increments will be deferred by at least a quarter. CEO Campbell Wilson urges a "laser sharp focus" on cost reduction, eliminating waste, and suspending discretionary spending to navigate these challenging times. Variable pay and planned promotions will continue.

Air India has assured employees there will be no layoffs despite significant losses exceeding Rs 22,000 crore last fiscal due to various "black swan events." However, annual increments will be deferred by at least a quarter, and employees are urged to cut discretionary spending to manage costs in the uncertain economic climate.

Air India has significantly reduced its flight schedule, cancelling around 200 weekly services from June to August due to soaring jet fuel prices and a depreciating rupee. These cuts follow previous reductions and aim to combat substantial losses. The airline is also exploring cost-saving measures like making meals optional on certain flights and unbundling lounge access for business class passengers.

A US-Israeli war with Iran has triggered significant global economic fallout, with companies reporting at least $25 billion in losses due to soaring oil prices and disrupted trade routes. Businesses worldwide are implementing cost-cutting measures, including price hikes and reduced production, as the conflict impacts various sectors, particularly airlines.

Get ready for pricier meals as India's restaurants and delivery apps plan a 5-10% food cost increase from next week. Soaring fuel prices, coupled with LPG shortages and staff issues, are forcing businesses to pass on rising transportation, packaging, and input expenses. This move disrupts annual pricing cycles, impacting dining out and delivery costs.

Aquarius individuals may experience a day filled with uncertainty and potential setbacks across various aspects of life. Patience and quiet faith are advised as delays and misunderstandings are likely. While love offers a bright spot, open communication is key. In career and finances, caution is urged with spending and travel, and students should focus on revision.

China's economic recovery is facing headwinds as factories slow and consumer spending falters, with April data revealing a significant slowdown. Weak domestic demand, coupled with a challenging global environment marked by geopolitical conflicts and rising energy costs, is squeezing growth. While exports remain strong, they are insufficient to offset internal weaknesses, prompting concerns about the need for further policy support.

India has significantly increased import duties on gold and silver to 15% from 6%, aiming to curb rising imports and conserve foreign exchange amid the West Asia crisis. This move follows Prime Minister Modi's appeal for austerity and aims to ease pressure on the rupee and the country's balance of payments.

Prime Minister Narendra Modi has urged citizens to adopt lifestyle changes to conserve foreign exchange and mitigate the economic impact of global energy crises. Key suggestions include reducing fuel consumption by using public transport, carpooling, and opting for electric vehicles, alongside reviving work-from-home policies and limiting discretionary spending on gold and foreign travel.

PM Modi has called on citizens to adopt measures aimed at conserving foreign exchange, as the surge in oil prices triggered by the Iran conflict has intensified pressure on the rupee and strained India’s foreign exchange reserves.

Desi consumption will hold ground, because non-rich still want to spend.

A distant Middle East conflict is now impacting Indian households, driving up costs for everyday essentials like LPG, cooking oil, and dry fruits. Furniture, electronics, and even paint are becoming pricier due to rising petrochemical and shipping expenses. Air travel and fuel prices are also climbing, with potential for further hikes as oil companies face significant losses.

India's GST collections hit an all-time high of Rs 2.43 lakh crore in April, fueled by a significant 26% surge in import taxes. Domestic transaction collections saw a modest 4.3% rise, prompting calls for policies to boost local manufacturing amidst geopolitical uncertainties and supply chain disruptions impacting industrial output.

India's top IT firms are cutting jobs. This shift is driven by AI and changing client demands. Companies now prioritize outcomes over sheer employee numbers. The focus is on skilled workers who can leverage AI. This recalibration signals a new era for the IT sector, emphasizing efficiency and specialized talent.