UPSC economy

RBI MONETARY POLICY JUNE 2026: KEY DECISIONS, IMPLICATIONS FOR INDIAN ECONOMY

The June 2026 RBI MPC meeting maintained the repo rate at 5.25% while revising FY27 GDP growth down to 6.6% and inflation up to 5.1%. The RBI also introduced key capital inflow measures and is evaluating polymer currency notes.

Click to View More
INDEX OF INDUSTRIAL PRODUCTION (IIP) TRENDS

The government revised the Index of Industrial Production (IIP) base year to 2022-23, adding sectors like water and waste management. Driven by manufacturing and capital goods, industrial output recorded a 4.9% growth in April 2026 under this new series.

Click to View More
MIDDLE EAST CRISIS AND INDIA'S ENERGY VULNERABILITY

The Middle East crisis highlights India's fossil fuel vulnerability, necessitating energy austerity. Transitioning to renewable energy, addressing fragmented governance through the proposed DERS, and leveraging nuclear expansion via the SHANTI Act are critical steps toward ensuring long-term energy Atmanirbharta.

Click to View More
BHARAT AUDYOGIK VIKAS YOJNA (BHAVYA) INFRASTRUCTURE FRAMEWORK

The ₹33,660-crore BHAVYA scheme by DPIIT aims to develop 100 plug-and-play industrial parks across India by 2032. Managed by NICDC via SPVs, it leverages a competitive challenge-based selection process to enhance the manufacturing ecosystem and PM Gati Shakti integration.

Click to View More
RBI APPROVES ₹2.86 LAKH CRORE SURPLUS TRANSFER TO CENTRAL GOVERNMENT

The RBI transferred a record ₹2.87 lakh crore surplus to the Central Government for FY26 under the Economic Capital Framework. This crucial non-tax revenue aids fiscal consolidation, effectively manages the fiscal deficit, and balances monetary stability with national public expenditure.

Click to View More
INDIA'S AGRICULTURAL EXPORT RESILIENCE AND TRADE POLICY

India's agricultural exports demonstrated remarkable resilience, growing to $53.1 billion in 2025-26 despite aggressive US tariffs. This was driven by strategic market diversification to Asia and Europe, offsetting challenges from stringent non-tariff barriers and WTO subsidy disputes over MSP.

Click to View More
FISCAL HEALTH INDEX 2026 BY NITI AAYOG

 NITI Aayog’s Fiscal Health Index 2026 assesses states’ finances, grouping them as Achievers or Aspirational. It warns that weak revenue mobilisation, rising committed expenditure, and poor transparency threaten stability. Examples like Odisha’s improvement and Punjab’s stress highlight the need for fiscal discipline and FRBM adherence.

Click to View More
Restoring river biodiversity through river ranching

River Ranching is a scientific fisheries management initiative implemented under the Pradhan Mantri Matsya Sampada Yojana (PMMSY) to restore depleted fish populations in India’s rivers. The programme involves releasing hatchery-reared fingerlings of native species into natural water bodies to enhance fish production, conserve riverine biodiversity, and strengthen ecological balance. Implemented by the Department of Fisheries with the National Fisheries Development Board (NFDB) as the nodal agency, it covers major river basins such as the Ganga, Brahmaputra, and Mahanadi. The initiative also supports sustainable inland fisheries, improves food security, and enhances the livelihoods of river-dependent communities while contributing to the broader goal of sustainable river ecosystem management.

Click to View More
PAC observation on SANKALP Scheme

The SANKALP (Skill Acquisition and Knowledge Awareness for Livelihood Promotion) scheme, launched in 2018 by the Ministry of Skill Development and Entrepreneurship with assistance from the World Bank, aims to strengthen short-term skill training by improving institutional capacity, ensuring industry relevance, and promoting inclusion of marginalised groups. However, audit findings by the Comptroller and Auditor General of India and observations of the Public Accounts Committee have highlighted concerns such as underutilisation of funds, slow implementation, weak monitoring mechanisms, and lack of preparedness. The issue underscores the need for stronger governance, outcome-based implementation, better industry linkages, and integration of vocational education within the school system to improve employability and effectively harness India’s demographic potential.

Click to View More
Strengthening Capital Goods for a Viksit Bharat

The Union Budget 2026–27 reinforces the capital goods sector as a key driver of India’s investment-led growth by increasing public capital expenditure to ₹12.2 lakh crore and introducing targeted measures to strengthen domestic manufacturing capacity. Key initiatives include a ₹10,000 crore container manufacturing scheme, establishment of Hi-Tech Tool Rooms, support for construction and infrastructure equipment, tax incentives for toll and electronics manufacturing, and customs duty exemptions for energy storage and critical mineral processing. Along with ongoing programmes such as Make in India, PLI and the Capital Goods Competitiveness Scheme, these measures aim to enhance technological capability, reduce import dependence and position India as a globally competitive manufacturing hub.

Click to View More
RBI holds repo rate steady: Key highlights and implications

The Reserve Bank of India kept the repo rate unchanged at 5.25% and retained a neutral stance, citing a favourable macroeconomic environment. With inflation projected at 2.1% for FY26 and GDP growth expected at 7.4%, the central bank opted for a cautious pause to allow the impact of earlier rate cuts to transmit fully. The decision ensures stability in borrowing costs and EMIs while preserving policy flexibility to respond to risks such as global uncertainty, crude oil volatility, and potential inflationary pressures.

Click to View More
SODIUM- ION BATTERIES : A STRATEGIC OPPORTUNITY FOR INDIA

India’s heavy reliance on lithium-ion batteries exposes it to critical mineral risks and import dependence. Sodium-ion batteries offer a safer, lower-cost, and resource-secure alternative suitable for grid storage and mass mobility. With supportive policy and ecosystem development, they can play a key role in strengthening India’s long-term energy security.

Click to View More
Let's Get In Touch!