Economy

 

Indian Economy Current Affairs, important for Competitive Exams.

PM Modi Inaugurates India’s First Greenfield Integrated Refinery-cum-Petrochemical Complex in Rajasthan

Prime Minister Narendra Modi inaugurated India’s first greenfield integrated Refinery-cum-Petrochemical Complex at Pachpadra in Balotra, Rajasthan, on 3 July 2026. Developed as a joint venture between Hindustan Petroleum Corporation Limited (HPCL) and the Government of Rajasthan, the 9 MMTPA refinery has been built with an investment of over ₹79,450 crore. The project is expected to strengthen India’s energy security, reduce dependence on petrochemical imports, and boost industrial development in western Rajasthan. It will also generate large-scale employment and promote sectors such as MSMEs, textiles, packaging, auto components, and agriculture-based industries. During the visit, the Prime Minister also launched several infrastructure projects worth around ₹1.06 lakh crore, including Jaipur Metro Phase 2, railway and highway projects, and renewable energy initiatives, giving a major push to Rajasthan’s economic growth.

PM Modi and Japanese PM Sanae Takaichi Inaugurate Maruti Suzuki’s Kharkhoda Plant

On 2 July 2026, Prime Minister Narendra Modi and visiting Japanese Prime Minister Sanae Takaichi jointly inaugurated Maruti Suzuki’s new vehicle manufacturing plant at IMT Kharkhoda, Haryana, during the India–Japan Joint Economic Forum. Spread over 800 acres, it is Maruti Suzuki’s largest manufacturing facility with a planned investment of ₹35,000 crore. The plant has an initial annual production capacity of 5 lakh vehicles, which will be expanded to 10 lakh vehicles, and is expected to create over 21,000 direct jobs. Built on the Industry 5.0 “Smart Factory” concept, the facility uses AI-powered collaborative robots (cobots) and incorporates green features such as 100% renewable energy, zero liquid discharge, a 70 MW solar plant, and eco-friendly rail logistics. The project strengthens India–Japan industrial cooperation and supports the “Make in India, Make for the World” initiative.

India’s Industrial Output Grows 5.1% in May 2026

India’s industrial output, measured by the Index of Industrial Production (IIP), grew by 5.1% in May 2026 compared to the previous year, improving from 4.9% growth in April 2026. April was the first month under the revised IIP series with 2022–23 as the new base year, featuring an updated product basket, revised weights, and wider sector coverage.

According to the Ministry of Statistics and Programme Implementation (MoSPI), the electricity and gas supply sector recorded the highest growth at 9.9%, while manufacturing and water supply, sewerage and waste management each grew by 5.5%. In contrast, the mining and quarrying sector contracted by 1.6%. MoSPI also replaced the Wholesale Price Index (WPI) with the Output Producer Price Index (Output PPI) as the deflator for the new IIP series, stating that the change will improve the accuracy of industrial output estimates and align India’s methodology with international best practices.

GI-Tagged Mango Varieties of India: Complete List and Importance

India has 12 mango varieties registered with Geographical Indication (GI) tags, each linked to a specific region known for its unique taste, quality, and heritage.

🏷️ GI-Tagged Mango Varieties of India

Mango VarietyState/RegionGI Tag YearDistinct Features
Alphonso (Hapus)Maharashtra (Ratnagiri, Sindhudurg, Raigad, Konkan)2018Known as King of Mangoes; saffron-colored pulp, rich aroma, creamy texture, low fiber.
Gir KesarGujarat (Junagadh, Gir forest region)2011Bright saffron pulp, sweet flavor; ideal for aamras and desserts.
Banganapalle (Safeda)Andhra Pradesh (Kurnool/Nandyal)2017Large oval fruit, golden-yellow skin, fibreless pulp, long shelf life.
Malihabadi DashehariUttar Pradesh (Malihabad, Lucknow)2009Elongated shape, thin skin, juicy pulp, nostalgic fragrance.
LangraBihar (Varanasi region)2009Greenish skin even when ripe, tangy-sweet taste, fibreless pulp.
Laxman BhogWest Bengal (Malda district)2008Golden color, smooth texture, rich sweetness; exported widely.
HimsagarWest Bengal (Murshidabad, Malda)2008Fibreless, aromatic, high pulp content; short season but premium demand.
FazliWest Bengal (Malda, Murshidabad)2008Very large fruit (up to 1 kg), late-season variety, juicy pulp.
KuttiattoorKerala (Kannur district)2025Early-season mango, smooth skin, creamy mild sweetness.
TotapuriKarnataka, Tamil Nadu, Andhra Pradesh2014Parrot-beak shape, tangy taste, used in pickles and pulp industry.
Khirsapati (Himsagar type)West Bengal2008Similar to Himsagar, prized for sweetness and aroma.
Amrapali (under GI process)Uttar Pradesh—Hybrid of Dashehari × Neelum; small, fibreless, very sweet.

Why is a GI Tag Important?

A Geographical Indication (GI) tag is an intellectual property right granted under the Geographical Indications of Goods (Registration and Protection) Act, 1999. It is given to products whose quality or reputation is closely linked to a particular geographical area. A GI tag protects authenticity, prevents misuse of product names, supports farmers by increasing market value, and improves export opportunities. In India, a GI registration is valid for 10 years and can be renewed. Besides mangoes, famous GI products include Darjeeling Tea, Basmati Rice, Banarasi Saree, Mysore Silk, and Bikaneri Bhujia.

Index of Services Production (ISP): India to Launch New Monthly Services Sector Index in July 2026

The Ministry of Statistics and Programme Implementation (MoSPI) will launch the Index of Services Production (ISP) in July 2026. The ISP is a monthly macroeconomic indicator that measures short-term growth in India’s services sector. It is the services-sector counterpart of the Index of Industrial Production (IIP) and aims to improve economic monitoring.

The services sector contributes over 50% of India’s Gross Value Added (GVA) and has been the largest sector of the economy since 2013-14.

A Technical Advisory Committee (TAC) on ISP was formed in May 2025 under the chairpersonship of Debjani Ghosh.

The base year of the ISP is 2024-25.

Initially, the index will cover major formal service industries, including:

  • Wholesale and retail trade
  • Transport
  • Banking and insurance
  • Telecommunications
  • Hotels and restaurants
  • Real estate
  • Professional and technical services
  • Arts and entertainment

Health and education services will be included later after data becomes available from the Annual Survey of Incorporated Services Sector Enterprises (ASISSE).

Trial monthly indices for 2025-26 and April 2026 will be released on 14 July 2026. Thereafter, monthly trial indices will be published with a 60-day time lag.

The ISP will use data from:

  • GST returns
  • Administrative records
  • ASISSE surveys
  • Quantity-based indicators for sectors such as railways and air transport

The index will be compiled using the fixed-weight Laspeyres volume methodology, with sectoral weights based on their contribution to GVA.

Importance of ISP:

  • Provides timely information on the performance of the services sector.
  • Complements the Index of Industrial Production (IIP).
  • Improves economic forecasting and business cycle analysis.
  • Supports evidence-based policymaking.

India Becomes the World’s Top Ship Recycling Nation

India became the world’s leading ship recycling nation in 2025, according to the latest report of the United Nations Conference on Trade and Development (UNCTAD) in May 2026.

  • India’s share in global ship recycling increased from 30.1% in 2024 to 35.4% in 2025.
  • Ship recycling volume in India rose to 2.99 million gross tonnes (GT) in 2025, compared to 1.86 million GT in 2024, registering an increase of nearly 60%.

Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal stated that India’s rise reflects:

  • Successful policy reforms
  • Industry participation
  • Compliance with international environmental and safety standards
  • He emphasized that India is emerging as a global hub for responsible and sustainable ship recycling.

Reliance and Meta Partner to Build India’s First AI Hyperscale Data Centre

In June 2026, Reliance Industries Limited (RIL) and Meta Platforms announced a landmark partnership to build India’s first custom-built AI-enabled hyperscale data centre at Jamnagar, Gujarat. The facility will support large-scale artificial intelligence training and processing workloads.

Under the agreement, Reliance will design, construct, operate, and manage the data centre, while Meta will lease its entire computing capacity. The project’s first phase will provide 168 MW of computing power and is expected to become operational within 24 months.

The data centre will be directly connected to Meta’s Project Waterworth, a global subsea cable network spanning over 50,000 km, enabling faster and more efficient data processing for users of WhatsApp, Instagram, and Facebook in India.

The project also emphasizes sustainability. It will operate on 100% renewable energy, supported by new solar and wind projects, and will use desalinated seawater-based cooling systems to reduce pressure on freshwater resources.

This initiative strengthens the growing partnership between Reliance and Meta and positions India as a major hub in the global artificial intelligence infrastructure ecosystem.

India Records Current Account Surplus of $7.1 Billion in Q4 of FY 2025–26

India recorded a current account surplus of 7.1 billion US dollars (0.7% of GDP) during the January–March quarter of FY 2025–26, according to the latest report released by the Reserve Bank of India (RBI).

For the entire financial year 2025–26, India’s current account deficit (CAD) stood at 25.2 billion US dollars (0.6% of GDP), compared to 22.9 billion US dollars in FY 2024–25.

The RBI report noted that the merchandise trade deficit widened to 83.4 billion US dollars in the fourth quarter, while net services receipts increased to 60.4 billion US dollars, providing support to the external sector.

India also witnessed an increase in Foreign Direct Investment (FDI), with net inflows rising to 6.9 billion US dollars during FY 2025–26, compared to 1.0 billion US dollars in the previous year. However, Foreign Portfolio Investment (FPI) recorded a net outflow of 16.4 billion US dollars during the fiscal year.

The report further stated that India’s foreign exchange reserves increased by 7.2 billion US dollars in the January–March quarter, although reserves declined by 23.6 billion US dollars during the entire FY 2025–26 on a Balance of Payments (BoP) basis.

RBI Keeps Repo Rate Unchanged at 5.25%

The Reserve Bank of India (RBI), in its Monetary Policy Committee (MPC) meeting held on 5 June 2026, unanimously decided to keep the repo rate unchanged at 5.25%. The MPC also retained its neutral policy stance, citing global economic uncertainty, geopolitical tensions in West Asia, and inflation concerns.

RBI Governor Sanjay Malhotra stated that the decision was taken after assessing current macroeconomic and financial conditions. Accordingly, the Standing Deposit Facility (SDF) rate remains at 5.0%, while the Marginal Standing Facility (MSF) rate and Bank Rate remain at 5.5%.

The RBI highlighted risks arising from supply chain disruptions, rising energy prices, global market volatility, and ongoing geopolitical tensions. Despite these challenges, the Governor noted that the Indian economy is better positioned than in previous periods of global turbulence due to its strong economic fundamentals.

Base Year of Wholesale Price Index (WPI) Revised to 2022–23

The Government of India has approved the revision of the Wholesale Price Index (WPI) base year from 2011–12 to 2022–23. The revised WPI series and new Producer Price Indices (PPIs) will be released on 15 June 2026 by the Office of Economic Adviser, DPIIT.

The new WPI series includes several improvements, such as an increase in the number of items from 697 to 957, inclusion of solar, wind, and nuclear energy under the electricity category, and adoption of improved methodologies for weighting and price calculation.

Along with the revised WPI, the government will also introduce Output Producer Price Index (OPPI), Input Producer Price Index (IPPI), and Service Producer Price Index (PPI) for selected services. The move is aimed at aligning India’s price measurement system with global best practices and providing a more accurate picture of producer-level inflation.

Exam-Ready Facts

  • Old WPI Base Year: 2011–12
  • New WPI Base Year: 2022–23
  • Release Date of Revised Series: 15 June 2026
  • Releasing Agency: Office of Economic Adviser, DPIIT
  • Number of WPI Items Increased: 697 → 957
  • New Energy Sources Included: Solar, Wind, and Nuclear Energy
  • New Indices Introduced: OPPI, IPPI, and Service PPI

RBI Transfers Record ₹2.86 Lakh Crore Surplus to Central Government in FY26

On 22 May 2026, the Reserve Bank of India (RBI) approved the transfer of a record ₹2.86 lakh crore surplus to the Central Government for the financial year 2025–26, marking one of the highest dividend payouts in the history of the central bank. The decision was taken during the 623rd meeting of the RBI Central Board, chaired by Governor Sanjay Malhotra in Mumbai.

According to the RBI, its gross income increased by 26.42% in FY26 compared to the previous financial year, while expenditure before risk provisions rose by 27.60%. The central bank reported that its net income before risk provisions reached ₹3.95 lakh crore in FY26, compared to ₹3.13 lakh crore in FY25. Meanwhile, the RBI’s balance sheet expanded by 20.61% to ₹91.97 lakh crore as of 31 March 2026.

The RBI also transferred ₹1.09 lakh crore to the Contingent Risk Buffer (CRB) while maintaining the buffer at 6.5% of the balance sheet under the revised Economic Capital Framework. During the meeting, the Board reviewed the global and domestic economic outlook, associated risks, and finalized the RBI’s annual accounts for FY2025–26.

Skyroot Aerospace Becomes India’s First Spacetech Unicorn

Skyroot Aerospace became India’s first spacetech unicorn on 7 May 2026 after raising $60 million at a $1.1 billion valuation. Skyroot is preparing to launch Vikram-1 from Sriharikota in the coming weeks, a mission that could become a major milestone for India’s fast-growing private space sector.

  • Significance:
    • First Indian spacetech start‑up to achieve unicorn status.
    • Strengthens India’s private space ecosystem after liberalisation of space sector in 2020.
    • Supports development of Vikram series rockets for cost‑effective satellite launches.

India Achieves Record 6.05 GW Wind Power Addition in FY 2025–26, Crosses 56 GW Capacity

India achieved a record wind power addition of 6.05 GW in FY 2025–26, surpassing its previous peak and marking a 46% increase over the previous year. This pushed the country’s total installed wind capacity beyond 56 GW, showing strong growth in the renewable energy sector.

The expansion has been driven by supportive government policies, improved infrastructure, competitive bidding, and better project execution, especially in key states like Gujarat, Karnataka, and Maharashtra. Initiatives such as hybrid wind-solar projects, green energy open access, tax benefits, and transmission charge waivers have further accelerated development.

India’s wind energy sector, which began in the early 1990s, has now become a major global player. This rapid growth will significantly contribute to India’s goal of achieving 500 GW of non-fossil fuel energy capacity by 2030, supporting a cleaner and more sustainable energy future.

RBI Cancels Paytm Payments Bank Licence

On 25 April 2026, the Reserve Bank of India (RBI) cancelled the banking licence of Paytm Payments Bank Limited, directing it to cease all banking operations with immediate effect. This action follows earlier regulatory measures, including the March 2022 order restricting onboarding of new customers and further 2024 restrictions on deposits, credits, and top-ups in accounts.

The RBI clarified that the bank has sufficient liquidity to repay all deposit liabilities, ensuring that customers’ funds remain secure during the winding-up process.

Dearness Allowance hiked by 2% for central government employees, pensioners

The Union Cabinet, chaired by Narendra Modi, approved a 2% increase in Dearness Allowance (DA) for Central government employees and Dearness Relief (DR) for pensioners, effective from 1 January 2026. With this revision, DA/DR has been increased from 58% to 60% of Basic Pay/Pension to offset inflation.

The decision will benefit around 50.46 lakh employees and 68.27 lakh pensioners, with an estimated financial burden of ₹6,791.24 crore annually. The hike is based on the 7th Central Pay Commission formula, which periodically revises allowances in line with inflation trends.

World Bank Raises India Growth Forecast from 6.3% to 6.6%

On April 8, 2026, the World Bank raised India’s GDP growth forecast for FY 2025–26 from 6.3% to 6.6%, citing strong domestic demand and trade agreements. India is expected to remain the main growth driver in South Asia.

  • GDP Growth:
    • FY 2024–25: 7.1%
    • FY 2025–26: 7.6% (estimated strong performance)
  • Forecast for current fiscal: 6.6%

🚀 Growth Drivers

  • Strong domestic consumption supported by low inflation
  • GST rationalisation boosting demand
  • Export resilience
  • Trade agreements with UK and EU enhancing economic activity

⚠️ Concerns

  • Rising global energy prices may increase inflation
  • Pressure on household disposable income
  • Global uncertainties could impact future growth

RBI Monetary Policy April 2026: Repo Rate Unchanged at 5.25%

On April 8, 2026, the Reserve Bank of India (RBI) kept the repo rate unchanged at 5.25%, maintaining a neutral stance. The decision was taken unanimously by the Monetary Policy Committee (MPC) under the leadership of Sanjay Malhotra.

⚖️ Key Policy Rates

  • Repo Rate: 5.25% (unchanged)
  • Standing Deposit Facility (SDF): 5.00%
  • Marginal Standing Facility (MSF) & Bank Rate: 5.50%

📊 Economic Projections

  • GDP Growth:
    • FY 2024–25: 7.6%
    • FY 2025–26: 6.9%
  • CPI Inflation (FY 2025–26): 4.6%

Saraswat Cooperative Bank and Amul Cross ₹1 Lakh Crore Turnover in FY 2025–26

In a landmark achievement for India’s cooperative sector, Saraswat Cooperative Bank and Amul (GCMMF) have both surpassed the ₹1 lakh crore annual turnover mark for the first time in the financial year 2025–26.

Saraswat Cooperative Bank’s milestone underscores the growing strength of cooperative banking in driving financial inclusion and grassroots prosperity. Meanwhile, Amul recorded an 11% growth over the previous year’s ₹90,000 crore turnover, cementing its position as the world’s largest farmer-owned dairy cooperative.

What Changed from April 1, 2026? Tax Rules, 2FA for Payments & PAN Card Reforms

From April 1, 2026, India introduced three major financial and compliance reforms—the Income Tax Act, 2025, mandatory two-factor authentication for digital payments, and revised PAN application rules—to simplify taxation, enhance security, and strengthen identity verification.

1. 🧾 New Income Tax System

  • Replaces the old Income Tax Act, 1961.
  • Features simplified tax slabs, higher deductions, and streamlined capital gains rules.
  • Revised TDS/TCS norms and ITR deadlines for better compliance.
  • Objective: Make taxation simpler and modern.

2. 🔐 Secure Digital Payments

  • Mandated by the Reserve Bank of India.
  • Two-factor authentication (2FA) required for all transactions (UPI, cards, net banking).
  • Enhances protection against fraud and boosts trust in digital systems.

3. 🆔 New PAN Card Rules

  • Aadhaar linkage mandatory for new PAN applications.
  • Fully digital application and e-verification process.
  • Stricter KYC norms to prevent misuse.
  • Faster PAN issuance.

OECD Report: India World’s Fastest-Growing Major Economy

The Organisation for Economic Co-operation and Development (OECD) released its Interim Economic Outlook on 26 March 2026. India remains the fastest-growing major economy globally.

🇮🇳 India Growth Projections

  • FY 2025–26: 7.6%
  • FY 2026–27: 6.1%
  • FY 2027–28: 6.4%

👉 India continues to lead global growth despite global uncertainties.

🌍 Global Economic Outlook

  • Global GDP Growth:
    • 2026: 2.9%
    • 2027: 3.0%
  • Growth supported by:
    • Technology investments
    • Lower tariff rates

⚠️ Key Global Challenges

  • Middle East conflict impacting global economy
  • Disruptions in the Strait of Hormuz affecting energy supply
  • Rising energy prices and inflation
  • Supply chain disruptions (including fertilisers)

Income Tax Rules 2026 Notified: Major Changes from April 1

The Government of India has notified the Income Tax Rules, 2026, which will come into effect from 1 April 2026. These rules introduce a major overhaul in procedural and compliance systems under direct taxation and implement provisions of the Income-tax Act, 2025.

Key Highlights

  • Stronger Compliance Framework: Updated definitions, reporting systems, and compliance structures to improve transparency.
  • Dividend Regulations Tightened: Companies must maintain proper share registers, hold general meetings, and distribute dividends only within India.
  • Stock Market Reforms: Stock exchanges must maintain audit trails for 7 years, prevent record deletion, and submit monthly reports on transaction modifications.

Capital Gains & Investment Reforms

  • Clear rules introduced for complex capital gains cases like debenture conversions and cross-border restructuring.
  • A new zero coupon bond framework requires prior approvals, investment-grade ratings, and defined fund usage timelines.
  • Standardized fair market value (FMV) rules for listed/unlisted shares, foreign entities, and partnerships.

Cross-Border & Digital Taxation

  • Tax authorities get enhanced powers to estimate non-resident income using global profit ratios or reasonable methods.
  • Significant Economic Presence (SEP) threshold fixed at ₹2 crore transactions or 3 lakh users for digital businesses.
  • A formula-based system introduced to calculate income linked to Indian assets in offshore deals.

Other Changes

  • Simplified and capped expense exemptions (including 1% of investment value).
  • Revised rules for employer-provided accommodation, based on salary, city population, and property status.

India Exports First GI-Tagged Joha Rice from Assam to UK and Italy in March 2026

India exported its first-ever consignment of Geographical Indication (GI)-tagged Joha rice from Assam on 12 March 2026, marking an important step in promoting India’s specialty agricultural products in global markets.

The shipment consisted of 25 metric tonnes of Joha rice, exported to the United Kingdom and Italy. The export was facilitated by the Agricultural and Processed Food Products Export Development Authority (APEDA) under the Ministry of Commerce and Industry, in collaboration with the Assam Agriculture Department.

Joha rice is an indigenous aromatic rice variety from Assam, known for its distinct fragrance, fine grain texture, and rich taste. It holds strong cultural significance in Assamese cuisine and is commonly used during traditional and festive occasions.

The rice received its Geographical Indication (GI) tag in 2017, recognizing its unique regional identity. The export of Joha rice is expected to boost Assam’s agricultural exports, promote GI-tagged products globally, and provide better income opportunities for local farmers.

Cabinet Approves Changes to FDI Policy for Investments from Neighbouring Countries

The Union Cabinet of India, chaired by Narendra Modi, approved amendments to India’s Foreign Direct Investment (FDI) policy on 10 March 2026 for investments from countries sharing a land border with India.

The revised policy introduces clearer rules for determining “beneficial ownership” and sets a 60-day timeline for approving investment proposals in key manufacturing sectors such as electronic components, capital goods, and solar manufacturing.

Under the new guidelines, non-controlling investments of up to 10% beneficial ownership by entities from land-bordering countries can now be allowed through the automatic route, subject to sectoral limits and reporting to the Department for Promotion of Industry and Internal Trade (DPIIT). However, majority ownership and control must remain with Indian citizens or Indian-owned companies.

The reform modifies the earlier restrictions introduced through Press Note 3 (2020), which required government approval for all investments from neighboring countries. The new changes aim to improve ease of doing business, attract more FDI, promote technology transfer, and strengthen India’s manufacturing sector under the Atmanirbhar Bharat initiative.

RBI Keeps Repo Rate Unchanged at 5.25%, Maintains Neutral Policy Stance

On 6 February 2026, Reserve Bank of India (RBI) Governor Sanjay Malhotra announced that the Monetary Policy Committee (MPC) unanimously decided to keep the policy repo rate unchanged at 5.25%, while maintaining a neutral policy stance.

Policy InstrumentCurrent RateDecisionNotes
Repo Rate5.25%UnchangedReflects cautious stance amid global uncertainties.
Standing Deposit Facility (SDF)5.00%UnchangedMaintains liquidity balance.
Marginal Standing Facility (MSF) & Bank Rate5.50%UnchangedNo change to borrowing costs for banks.
Monetary Policy StanceNeutralContinuedMPC remains flexible to respond to evolving conditions.

📊 Economic Outlook

  • Inflation: Currently low and under control, allowing RBI to avoid tightening.
  • Growth Projection: FY26 GDP growth estimated at 7.4%, supported by strong domestic demand.
  • Global Context: MPC highlighted uncertainties in global markets but noted India’s resilience.
  • Past Actions: Since Feb 2025, RBI has already cut repo rate by 125 basis points, creating room for growth.


India-US Trade Deal 2026: Tariffs Cut to 18%

On February 2, 2026, U.S. President Donald Trump and Indian Prime Minister Narendra Modi announced a landmark U.S.–India trade agreement, marking a major easing of trade tensions between the two countries.

Key Highlights

  • The United States has reduced reciprocal tariffs on Indian products to 18%, down from much higher effective rates earlier.
  • An additional 25% punitive duty linked to India’s purchase of Russian oil has been withdrawn, sharply lowering the overall tariff burden on Indian exports.
  • The U.S. President stated that India has agreed to stop buying Russian crude oil and shift energy imports towards the U.S. and other sources.
  • The U.S. administration also claimed that India will purchase over $500 billion worth of American energy, technology, and agricultural products, while moving towards reducing tariff and non-tariff barriers on U.S. goods.

Economic Impact

The announcement boosted market sentiment, as the U.S. is India’s largest trading partner. The lower tariff rate makes Indian exports more competitive compared to other Asian exporters.

Sectors expected to benefit include:

  • Textiles and Apparel, which were among the worst affected by earlier high duties
  • Gems and Jewellery, due to reduced export costs
  • IT Services, with major Indian tech companies witnessing positive market reactions
  • Energy and Technology, driven by increased imports from the U.S.

Union Budget 2026–27: Key Highlights for Competitive Exams

Union Budget 2026–27 is India’s 80th budget, presented by Finance Minister Nirmala Sitharaman on 1st February 2026. It emphasizes fiscal discipline, infrastructure push, reforms in taxation, and youth-centric growth.

📌 Union Budget 2026–27: Key Highlights

Fiscal & Economic Indicators

  • Total Expenditure: ₹53.47 lakh crore (↑7.7% from 2025–26)
  • Receipts (excluding borrowings): ₹36.51 lakh crore (↑7.2%)
  • Nominal GDP Growth Estimate: 10% (real growth + inflation)
  • Fiscal Deficit Target: 4.3% of GDP (vs. 4.4% in 2025–26)
  • Revenue Deficit Target: 1.5% of GDP (same as 2025–26)

Taxation & Customs

  • Simplification of customs tariff structure to boost exports.
  • Duty-free import limit for seafood export inputs raised to 3% of FOB turnover.
  • Exemptions extended for lithium-ion battery storage, solar glass, nuclear power projects (till 2035).
  • Phasing out exemptions for items with negligible imports to encourage domestic manufacturing.

Infrastructure & Growth

  • High-speed corridors announced for logistics efficiency.
  • Capital expenditure thrust continues to drive growth.
  • Focus on manufacturing in frontier sectors and rejuvenation of legacy industries.
  • Push for MSMEs as “champion sectors.”

Social & Welfare Initiatives

  • Yuva Shakti-driven Budget: Emphasis on youth employment and skill development.
  • Strengthening social welfare schemes for inclusive growth.
  • Focus on healthcare, education, and rural development.

Economic Survey 2025–26: India Projects 7.4% Growth with Historic Low Inflation

Finance Minister Nirmala Sitharaman tabled the Economic Survey 2025–26 in the Lok Sabha on 29 February 2026, prepared by the Department of Economic Affairs under the guidance of the Chief Economic Advisor.

The Survey presents a comprehensive assessment of India’s economy, projecting strong real GDP growth of 7.4%, historic low inflation of 1.7%, and sustained economic resilience despite global uncertainties. It highlights robust domestic demand, infrastructure-led growth, improving banking health, and fiscal consolidation, positioning India as the fastest-growing major economy.

Serving as the foundation for Union Budget 2026, the Survey emphasizes reforms, social sector priorities, and a forward-looking approach of “caution, not pessimism” as India advances toward long-term stability and global leadership.

India–EU Free Trade Agreement (FTA) 2026: Key Highlights & Strategic Impact

On 27 Jan 2026, India and the European Union (EU) officially concluded negotiations on a landmark Free Trade Agreement (FTA), described as the “mother of all deals.” The pact is expected to become operational by end of 2026, significantly reshaping global trade dynamics by eliminating tariffs, boosting exports, and strengthening strategic ties between two major economies.

The FTA covers markets representing ~2 billion people and ~25% of global GDP. It includes major tariff reductions, such as removal of duties on aircraft, and cuts on alcohol, food products, chemicals, and over 90% of EU goods. The deal ensures market access for 99% of India’s exports and includes €500 million in climate support funding.

Strategically, it promises an economic boost, with expectations of doubling EU exports to India by 2032, while enhancing India’s competitiveness in textiles, IT services, and pharmaceuticals. It also contributes to geopolitical balance amid uncertainties with the US and China, and expands cooperation in defence, security, and mobility.

However, challenges include a lengthy ratification process, domestic adjustments for Indian sectors like agriculture and small-scale manufacturing, and the need for regulatory alignment with EU standards on data protection, sustainability, and product quality.

In conclusion, the India–EU FTA marks a historic milestone, paving the way for economic growth, innovation, and stronger geopolitical alignment, despite implementation and adaptation challenges.

India’s Real GDP Estimated to Grow 7.4% in 2025–26

India’s real Gross Domestic Product (GDP) is projected to grow by 7.4% in 2025–26, compared to 6.5% in the previous fiscal year. According to the first advance estimates released on 7 January 2026 by the Ministry of Statistics and Programme Implementation, the real GDP for the current financial year is estimated to exceed ₹201 lakh crore, higher than the provisional estimate of over ₹187 lakh crore in 2024–25.

The Ministry stated that buoyant growth in the services sector is the major driver of this expansion. Sectors such as trade, hotels, transport, communication, and broadcasting-related services are estimated to grow by 7.5% this fiscal. In the secondary sector, manufacturing and construction are expected to register a 7% growth rate.

Reacting to the GDP figures, Prime Minister Narendra Modi noted that India’s “Reform Express” continues to gain momentum, powered by the NDA Government’s investment-led and demand-led policies. He highlighted ongoing efforts to build a prosperous India through infrastructure development, manufacturing incentives, digital public goods, and improved ease of doing business.

India’s Largest Integrated Inland Rainbow Trout Farm Inaugurated in Telangana

On 5 January 2026, Union Minister of Fisheries, Animal Husbandry and Dairying Rajiv Ranjan Singh, along with Union Coal Mines Minister G Kishan Reddy, inaugurated India’s largest integrated inland Rainbow Trout farm in Ranga Reddy district. The project has been developed by startup SmartGreen Aquaculture with an estimated investment of ₹50 crore.

This initiative is significant because Rainbow Trout is a cold-water fish species that has traditionally been farmed only in the high-altitude Himalayan regions of India. Through the use of advanced engineering, temperature-controlled systems, and modern aquaculture technology, the farm enables trout cultivation in the warm climate of the Deccan Plateau, marking a major technological breakthrough in Indian fisheries.

Speaking at the event, Rajiv Ranjan Singh assured full government support for the export of Rainbow Trout, particularly through assistance from the National Fisheries Development Board (NFDB). The project is expected to boost inland aquaculture diversification, encourage startup-led innovation, create employment, and enhance India’s presence in high-value fish exports.

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