Economy

 

Indian Economy Current Affairs, important for Competitive Exams.

India’s Manufacturing PMI Declines to 54.7 in October 2026

India’s manufacturing activity continued to expand in October 2026, although the HSBC India Manufacturing Purchasing Managers’ Index (PMI) moderated to 54.7 from 55.1 in September, according to data released by S&P Global.

  • The PMI remained above the neutral mark of 50, indicating continued expansion in the manufacturing sector. Strong domestic demand and new export orders, which recorded their fastest growth in six months, supported factory production.
  • Input cost inflation eased to its lowest level since February, while the rise in selling prices was the weakest in nearly four years. Factory employment increased for the second consecutive month.
  • Manufacturers increased input inventories at the fastest pace in eight months to prepare for potential supply shortages. However, business confidence remained subdued, with only 18% of manufacturers expecting output to increase over the next 12 months.

India–Poland Agree to Double Bilateral Trade by 2030

India and Poland agreed to double bilateral trade by 2030 following talks between Prime Minister Narendra Modi and Polish Prime Minister Donald Tusk on 22 October 2026.

  • Trade: Promote investment and business partnerships in manufacturing, infrastructure, pharmaceuticals, energy and critical minerals; support early implementation of the India-EU Free Trade Agreement.
  • Defence and Technology: Proposed a Defence Industry Dialogue and agreed to strengthen cooperation in AI, semiconductors, quantum technology, cybersecurity and counter-terrorism.
  • Connectivity: Explore more direct flights and cooperation in shipping, ports and maritime security; highlighted the India-Middle East-Europe Economic Corridor (IMEC).
  • Critical Minerals and Space: Enhance cooperation in rare earth minerals, mining, battery recycling and space research.
  • Education and Culture: Expand university partnerships, student exchanges and joint research; recognise historical ties dating back to the Second World War.
  • UN Reforms: Poland supported India’s membership of a reformed UN Security Council and its candidature for a non-permanent seat for 2028–29.
  • Global Issues: Condemned terrorism, including the Pahalgam attack of 22 April 2025, and called for a just and lasting peace in Ukraine.
  • Climate and Energy: Promote clean energy and climate-resilient development; India invited Poland to join the International Solar Alliance and Global Biofuels Alliance.

India’s largest-ever IPO – Jio Platforms Limited

Jio Platforms Limited, the digital arm of Reliance Industries Limited (RIL), launched its ₹30,213 crore IPO on 21 October 2026, making it India’s largest-ever IPO according to the provided information.

  • IPO Price Band: ₹1,065–₹1,119 per share.
  • Company Valuation: Approximately ₹10.3 lakh crore at the upper price band.
  • Subscription Period: 21–23 October 2026.
  • Listing Date: Scheduled for 28 October 2026 on BSE and NSE.
  • FY2025–26 Financials: Revenue of ₹1,46,885 crore and net profit of ₹30,049 crore.
  • Utilisation of Funds: ₹27,500 crore is earmarked for repayment of Reliance Jio Infocomm’s borrowings, with the remaining amount intended for general corporate purposes.
  • Day 1 Subscription: The issue was reported to be fully subscribed within 100 minutes, with overall subscription reaching approximately 3.2 times.

Cabinet Approves Sale of 60.72% Stake in IDBI Bank to Fairfax for ₹52,878 Crore

The Cabinet Committee on Economic Affairs (CCEA) approved Canada-based Fairfax Financial Holdings Ltd. as the strategic buyer for a 60.72% stake in IDBI Bank for approximately ₹52,878.08 crore, marking the largest foreign direct investment (FDI) in India’s financial sector once completed.

Key Points:

  • Strategic Buyer: Fairfax Financial Holdings Ltd. (Canada).
  • Total Stake Sale: 60.72% — Government of India (30.48%) and Life Insurance Corporation of India (LIC) (30.24%).
  • Sale Price: ₹81 per share, exceeding the benchmark valuation of ₹75.99 per share.
  • Government’s Remaining Stake: 15%.
  • LIC’s Remaining Stake: 19%.
  • Disinvestment Process: The sale followed a two-stage competitive bidding process overseen by government committees.
  • Background: The RBI placed IDBI Bank under the Prompt Corrective Action (PCA) framework on 5 May 2017 due to non-performing assets and losses. Restrictions were lifted on 10 March 2021 following improvements in its financial health.
  • Further Disinvestment: The CCEA authorised the sale of the government’s remaining 15% stake through the open market under standard procedures.

MDR Implementation Deferred; to be implemented after Diwali

MDR Implementation Deferred: The National Payments Corporation of India (NPCI) has decided to implement the Merchant Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions only after the festive season (Diwali). The exact start date will be announced later.

Reason for Delay: The deferral aims to prevent disruptions during the upcoming holiday shopping period, when digital retail transactions spike.

About NPCI

Role: An umbrella organization established by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) to operate retail payment and settlement systems across India.

Core Products: UPI, RuPay, IMPS, NACH, NETC, AePS, and e-RUPI.

American Economists Robert E. Hall and Michael Woodford Awarded 2026 Nobel Prize in Economics

American economists Robert E. Hall (Stanford University) and Michael Woodford (Columbia University) have been awarded the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for their foundational research on the microeconomic foundations of macroeconomic stabilization. Their groundbreaking theoretical models transformed how central banks and governments understand household and firm behaviors to effectively smooth out economic booms and downturns.

Key Highlights

  • Core Research Contribution:The Royal Swedish Academy of Sciences recognized the duo for establishing stable macroeconomic models that link individual choices—such as household consumption and business decision-making—to broad economic stability.
  • Impact on Policy:Their work provided the theoretical groundwork for modern monetary and fiscal policy framework, helping policymakers better design targeted interventions to reduce severe inflation, recessions, and volatility.
  • Institutional Affiliations:Robert E. Hall is a professor at Stanford University, while Michael Woodford is based at Columbia University.
  • Prize Details:The laureates will share the prize purse of 12 million Swedish kronor (approximately $1.2 million USD).

57th GST Council Meeting: Key Taxpayer-Friendly Reforms

On 8 October 2026, the 57th GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman in New Delhi, approved several procedural reforms to improve the ease of doing business and reduce the compliance burden on taxpayers. The Council focused on simplifying GST procedures, with no changes to GST rates.

Key Decisions

  • Arrest Powers: Removal of arrest powers from tax officers, as announced by the Finance Minister.
  • Prosecution Threshold: Increased from ₹1 crore to ₹5 crore.
  • GST Registration: Automatic acceptance of routine changes in GST registration.
  • Refund Processing: Acknowledgement period reduced from 15 days to 10 days.
  • Faster Refunds: 90% of eligible refund claims to be issued within three working days.
  • Input Tax Credit (ITC): Expanded eligibility to cover additional expenditure categories, including telecom towers and employer-provided insurance.
  • GST Rates: No changes were made to the existing GST rate structure.

RBI Raises Repo Rate to 5.50% and Adopts Calibrated Tightening Stance

On 7 October 2026, the RBI Monetary Policy Committee (MPC) unanimously raised the repo rate by 25 basis points to 5.50%, marking the first rate hike in four years. The policy stance was changed to “calibrated tightening” to contain rising inflationary pressures.

Key Points:

  • Repo Rate: 5.25% → 5.50%
  • SDF: 5.25%
  • MSF & Bank Rate: 5.75%
  • CPI inflation: Projected at 5.8% over the next three quarters.
  • Core inflation: Expected at 4.4% in FY 2026–27.
  • Q1 FY 2026–27 GDP growth: 7.8%
  • Inflation risks were linked to higher crude oil prices, food costs and supply-chain pressures.
  • Strong domestic consumption, investment and services exports supported economic growth.
  • Global risks included West Asia tensions, high bond yields and financial-market volatility.

UPI Charges on Merchant Payments Above ₹2,000

On 16 September 2026, the Finance Ministry of India announced that UPI merchant transactions above ₹2,000 will attract a 0.4% fee.

  • Rate: 0.4% MDR on Person-to-Merchant (P2M) transactions above ₹2,000.
  • Cap: ₹300 per transaction for payments of ₹75,000 and above.
  • Effective Date: 15 October 2026.
  • Applicability: Only for merchant payments (PhonePe, Paytm, Google Pay, etc.).

Exemptions:

  • Person-to-Person (P2P) transfers remain free.
  • Small merchants earning up to ₹1 lakh/month via UPI QR codes are exempt.
  • Essential sectors (railways, telecom, fuel, utilities) have a flat ₹5 MDR.

💡 What is UPI?

  • UPI (Unified Payments Interface) is a real-time payment system launched in 2016 by NPCI (National Payments Corporation of India).
  • It enables instant money transfers via mobile apps using:
    • Virtual Payment Address (VPA)
    • Mobile number
    • QR codes
  • Operates on IMPS infrastructure, available 24×7.

🎯 Purpose of the Fee

  • Cost Recovery: To cover infrastructure and settlement costs for high-value merchant transactions.
  • Encourage Digital Payments: Keeps small-value transactions free to promote everyday usage.
  • Balance for Merchants: Fee is far lower than debit/credit card MDR (Merchant Discount Rate).
  • Sustainability: Ensures long-term viability of UPI ecosystem.

India’s Retail and Wholesale Inflation Rise in August 2026

According to data released by the Ministry of Statistics and Programme Implementation, India’s inflationary pressures strengthened in August 2026, with both retail and wholesale inflation rising.

  • Retail CPI inflation increased to 4.82%, the highest level of 2026 so far, from 4.45% in July.
  • Food inflation rose to 5.95%, mainly due to sharp price increases in onion, garlic and ginger.
  • Wholesale WPI inflation climbed to 9.92%, led by higher fuel and power, food, and manufactured product prices.
  • WPI fuel and power inflation reached 22.93%, while manufactured products recorded a series-high 8.37%.
  • With CPI remaining above the RBI’s 4% medium-term target, persistent food and fuel price pressures could make monetary policy more challenging.
  • Rising crude oil prices and West Asia tensions may add further inflationary pressure, potentially increasing the likelihood of RBI rate hikes.

India’s credit rating upgraded to ‘A-‘ by Japan Credit Rating Agency

India’s credit rating has been upgraded by Japan Credit Rating Agency (JCR) from ‘BBB+’ to ‘A-’, reflecting the country’s strong economic fundamentals and improving financial and fiscal position.

  • Rating upgrade: ‘BBB+’ → ‘A-’
  • Outlook: Stable
  • Country ceiling: Upgraded by one notch to ‘A’
  • Key reasons: Strong economic growth, effective economic policies, improved fiscal quality and a stronger financial system.
  • Growth drivers: Robust private consumption and public investment.
  • Economic reforms: Digital Public Infrastructure and Goods and Services Tax (GST) have strengthened India’s economic foundations.
  • Fiscal improvement: Central Government fiscal deficit declined from 4.7% in FY25 to 4.4% in FY26.
  • Capital expenditure: Remained high, with greater focus on infrastructure investment.

India’s GST Collection Rises 14.8% to ₹1.99 Lakh Crore in August 2026

India’s Gross GST revenue in August 2026 reached ₹1.99 lakh crore, registering a 14.8% year-on-year growth over August 2025. The strong collection reflects robust domestic consumption, improved tax compliance, and continued growth in manufacturing and services.

📊 Key Facts

  • GST Collection: ₹1.99 lakh crore
  • YoY Growth: 14.8%
  • CGST: ~₹35,000 crore
  • SGST: ~₹44,000 crore
  • IGST: ~₹95,000 crore
  • Cess: ~₹25,000 crore
  • GST introduced: 1 July 2017
  • Tagline/Concept: “One Nation, One Tax”

About GST (Goods and Services Tax)

  • Introduced: 1 July 2017
  • Nature: Indirect tax replacing multiple levies like excise duty, service tax, VAT.
  • Structure:
    • CGST: Collected by the Centre on intra-state sales.
    • SGST: Collected by States on intra-state sales.
    • IGST: Collected by Centre on inter-state sales and imports.
  • Objective: “One Nation, One Tax” – to simplify taxation, remove cascading effect, and create a unified national market.

India’s real GDP grew 7.8% in Q1 (April–June) of FY 2026–27

India’s real GDP grew 7.8% in Q1 (April–June) of FY 2026–27, while real GVA increased 8.2%, reflecting strong economic activity despite global uncertainties, oil price shocks and supply-chain disruptions.

Key Points

  • Real GDP growth: 7.8% in Q1 FY27
  • Real GVA growth: 8.2%
  • Real GDP: ₹81.36 lakh crore
  • Nominal GDP: ₹88.27 lakh crore, up 10.3%
  • Manufacturing: Major driver of growth
    • Capital goods output: +15.2%
    • Electrical equipment manufacturing: +27%
    • Computer, electronic & optical products: +12.4%
  • Exports of goods and services: +25.8%
  • Imports: +30.5%
  • Transport goods exports: +52.2%
  • Machinery and equipment exports: +31.9%
  • Commercial vehicle sales: +18.3%
  • Three-wheeler sales: +29.7%
  • The estimates use the new national accounts series with 2022–23 as the base year, introduced by MoSPI in February 2026.
  • Next GDP estimates (Q2 FY27): Scheduled for 30 November 2026.

UPI Completes 10 Years: India’s Digital Payment Revolution

UPI (Unified Payments Interface) has completed 10 years on 25 August 2026, transforming India’s digital payments ecosystem and becoming the world’s largest real-time payment system.

  • Launched: 25 August 2016 by NPCI under RBI oversight.
  • Transaction growth: From 1.78 crore transactions in 2016–17 to 24,162 crore in 2025–26 — nearly 13,000-fold growth.
  • Transaction value: Increased from ₹0.07 lakh crore to ₹314 lakh crore.
  • July 2026: Record 2,366 crore transactions worth ₹29.88 lakh crore.
  • Banks on UPI: Increased from 44 to 703.
  • Global recognition: UPI accounted for 49% of global real-time payment transactions in 2025.
  • International reach: UPI is accepted in several countries, including Singapore, UAE, France, Sri Lanka, Nepal and Mauritius.
  • Impact: Promotes financial inclusion, cashless payments, digital innovation and convenient P2P/P2M transactions.

Government Approves Duty-Free Import of 10 Lakh Tonnes of Raw Sugar

The Government has approved duty-free import of 10 lakh tonnes (10 LMT) of raw sugar to boost domestic availability and stabilize sugar prices ahead of the festive season.

  • Sugar prices rose from ₹48.18/kg (20 July) to ₹55.70/kg (20 August 2026).
  • Domestic sugar production is estimated at 306 LMT, below the initial estimate of 343 LMT.
  • Price rise is attributed to lower production, festive demand, crop damage, global supply concerns, and hoarding/speculation—not ethanol diversion.
  • 10 LMT duty-free raw sugar imports have been approved as a precautionary supply measure.
  • A 400-tonne stock limit has been imposed on sugar dealers from 1 August to 30 November 2026.
  • Sugar mills have been advised to begin crushing from 15 October 2026 to increase festive-season supply.

UPI to Remain Free for Citizens; Merchant Transactions May Attract Charges

The Government of India has clarified that UPI payments will remain free for citizens. The recent amendment to the Payment and Settlement Systems (PSS) Act, 2007 is an enabling provision aimed at ensuring the long-term sustainability, technological advancement and resilience of India’s UPI ecosystem.

  • No charges for users: Citizens will not have to pay transaction charges for UPI payments.
  • P2P transactions remain free: Person-to-Person (P2P) UPI transactions will continue to be free.
  • MDR for merchants: If introduced in future, Merchant Discount Rate (MDR) will apply only to a limited set of merchant transactions above a specified threshold and at a nominal rate.
  • Most merchant transactions remain free: MDR will not be a blanket charge on all UPI merchant transactions.
  • Decision on MDR: After Parliament passes the Taxation and Other Laws (Amendment) Bill, 2026, the UPI and Services Steering Committee headed by NPCI will decide whether MDR should be introduced.
  • Reason for amendment: The measure aims to support UPI’s growing infrastructure, cybersecurity, fraud prevention, technological upgrades and financial sustainability.
  • UPI growth: In July 2026, UPI processed 2,366 crore transactions worth ₹29.9 lakh crore.
  • Global reach: UPI is now live in 11 foreign countries and has emerged as the world’s largest real-time payment system.
  • UPI background: Developed by NPCI and launched in 2016, UPI enables instant interoperable payments through mobile numbers, VPA and QR codes.

India’s First Direct Commercial Container Freight Train to Nepal

India and Nepal have started the first direct commercial container freight train service from Kolkata Port to Biratnagar Customs Yard, Nepal in July 2026. The 40-wagon train, carrying canola, operated under the revised India–Nepal Rail Transit Protocol. The new service allows container cargo to move directly by rail without transshipment at the border, reducing transit time, logistics costs, and cargo handling while improving trade between the two countries.

Important Points:

  • First Direct Freight Train: Kolkata Port (India) → Biratnagar Customs Yard (Nepal)
  • Train Details: 40 wagons carrying canola.
  • Protocol: Operated under the revised India–Nepal Rail Transit Protocol.
  • Key Feature: Direct rail movement without border transshipment.
  • Rail Link Used: Jogbani (India) – Biratnagar (Nepal) broad-gauge rail link.
  • Rail Link Inaugurated: June 2023 by PM Narendra Modi and the then Prime Minister of Nepal.
  • Revised Letter of Exchange (LoE): Signed in November 2025, enabling direct commercial operations.
  • Benefits:
    • Reduces transit time and logistics costs.
    • Improves cargo handling and supply chain efficiency.
    • Promotes faster, cheaper, and greener transportation.
    • Strengthens India–Nepal trade and economic cooperation.
  • Significance: A major step in expanding international rail connectivity and regional trade.

India’s Cotton Industry – Key Highlights

According to an official government factsheet released on 21 July 2026:

Global Position:

  • 1st in acreage (114.84 lakh hectares).
  • 2nd in production & consumption.
  • Contributes ~19% of global fibre output.

Production & Consumption (2025–26):

  • Production: 290.91 lakh bales.
  • Consumption: 328 lakh bales.

Government Interventions:

  • MSP operations for farmer price support.
  • Mission for Cotton Productivity (2026–31): Target 498 lakh bales by 2031.
  • Tech demonstrations, digital procurement, traceability for quality & competitiveness.

Economic Significance:

  • Known as “White Gold”.
  • Supports 6 million farmers + 40–50 million workers in textile value chain.
  • Major source of foreign exchange via exports.

Exports (2024–25):

  • Volume: 18 lakh bales (0.31 MMT) → 3.37% of global exports.
  • Value: USD 11.49 billion.
  • Top destinations: USA (26.35%), Bangladesh (19.81%), Sri Lanka (5.11%), UK (2.38%), UAE (2.32%).

Geographic Spread:

  • Northern Zone: Punjab, Haryana, Rajasthan.
  • Central Zone: Gujarat, Maharashtra, Madhya Pradesh.
  • Southern Zone: Telangana, Andhra Pradesh, Karnataka.
  • Also in Odisha & Tamil Nadu.

India–UK Comprehensive Economic & Trade Agreement (CETA) Comes into Force

The India–UK Comprehensive Economic & Trade Agreement (CETA) came into force on 15 July 2026, marking a major milestone in bilateral relations. The agreement aims to enhance trade, investment, digital commerce, and strategic cooperation between the two countries.

Under the agreement, 100% of Indian exports to the UK and over 90% of UK exports to India will receive zero-tariff access. It provides greater market access for Indian sectors such as textiles, pharmaceuticals, IT services, and agriculture, while UK products including automobiles, Scotch whisky, and financial services gain easier entry into India.

The pact also introduces special visa quotas for Indian professionals, students, and researchers, strengthens cooperation in e-commerce, fintech, and digital trade, and includes provisions on intellectual property, labour rights, environmental standards, and dispute resolution.

Strategically, the agreement is expected to strengthen the India–UK partnership in the Indo-Pacific, boost exports and employment in India, and help the UK diversify its trade beyond the European Union after Brexit.

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.

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