Banking & Economy Current Affairs 2026 for Government Exams

The <b>Ministry of Commerce and Industry (MoC&I)</b> released trade data for <b>Q1 (April-June) of FY2026-27</b>. India's total exports in Q1 FY27 stood at <b>USD 232.73 billion</b> and total imports at <b>USD 270.15 billion</b>. Merchandise exports were <b>USD 129.32 billion</b> (up from USD 111.57 bn in Q1 FY26) and services exports were estimated at <b>USD 103.41 billion</b>. Merchandise imports stood at USD 216.18 billion and service imports at USD 53.97 billion.

The Reserve Bank of India (RBI) approved the appointment of Rajiv Kumar as the part-time chairman of HDFC Bank for a period of three years, effective 15 July 2026. Earlier in July 2026, the RBI appointed Ravi Shankar as an Executive Director (effective 1 July 2026) to head the Department of Statistics and Information Management (DSIM).

On 15 July 2026, the Union Cabinet chaired by PM Narendra Modi cleared seven major decisions with a combined outlay of Rs 2,19,353 crore. Key approvals: Semicon 2.0 (outlay Rs 1,27,500 crore), the second phase of the India Semiconductor Mission; the Mobile Phone Manufacturing Scheme (MPMS) with Rs 62,500 crore over 5 years; and the National Investment Policy for Urea-2026 (NIPU-2026) to boost indigenous urea capacity. Rail projects cleared include doubling of the Paradeep-Haridaspur line (Rs 2,542 crore) and a fourth line between Dangoaposi-Rajkharsawan (Rs 1,365 crore), plus a 6-lane Greenfield elevated corridor linking NH-19 and the Varanasi Ring Road (UP) on Hybrid Annuity Model.

India Post recorded its highest-ever first-quarter revenue of over ₹4,000 crore (Q1 FY 2026-27), registering 22% year-on-year growth, as announced by Union Communications Minister Jyotiraditya M. Scindia. The milestone reflects India Post's push into parcel, logistics and citizen-centric financial services.

Bank of Maharashtra (BoM) launched "FinSpark''26", a national-level cybersecurity hackathon under the theme "Securing the Future of Banking", with the Indian Banks' Association (IBA), the Department of Financial Services (DFS) and COEP Technological University. It offers a prize pool of over ₹10 lakh; the top 20 teams present at the Grand Finale at COEP, Pune, and winners demonstrate at Global FinTech Fest 2026.

The International Monetary Fund (IMF), in its July 2026 World Economic Outlook (WEO) Update, lowered India's real GDP growth forecast for FY2026-27 to 6.4%, down from the 6.5% projected in April 2026, citing elevated global energy prices and trade uncertainty. The IMF raised India's FY28 forecast to 6.7% (from 6.5%), describing the dip as transient. India remains the world's fastest-growing major economy, well ahead of China (4.6%) and the United States (2.3%). The IMF retained global growth at 3.0% for 2026 and 3.4% for 2027. India's growth is powered by strong private consumption and a resilient services sector.

Dilip Asbe, MD & CEO of NPCI, was appointed to the Supervisory Board of SWIFT as the body transitions from a single-tier board to a two-tier governance structure (Supervisory Board + Management Board). The Supervisory Board will have 12 members (expandable to 15) — eight shareholder-affiliated and four independent directors — strengthening India's voice in global financial messaging.

NPCI introduced a UPI safety feature that displays the recipient's verified bank-registered name whenever users scan a QR code or enter a mobile number, replacing custom names and aliases to curb fraud.

Union Home and Cooperation Minister Amit Shah launched Bharat Taxi in Gujarat, India's first cooperative ride-hailing platform, designed to give drivers better earnings and ownership than commercial aggregators.

NPCI data showed UPI transactions reached a record 23.2 billion in volume worth Rs 29.90 lakh crore in May 2026 - up 24% in volume year-on-year - aided by summer travel and IPL spending.

The RBI's draft proposes barring PPIs for cross-border transactions, reducing the monthly cash-loading limit for full-KYC PPIs to Rs 10,000, and capping person-to-person transfers at Rs 25,000/month.

In April 2026, bank lending rates rose modestly on robust credit demand even as the repo rate stayed unchanged, while deposit rates continued to soften.

Effective April 2026, BSBD (zero-balance) accounts offer free cash deposits, free ATM withdrawals and free passbooks/statements, deepening the financial-inclusion push.

UPI processed 22.35 billion transactions in April 2026 (up 25% year-on-year) worth Rs 29.03 lakh crore, reflecting continued expansion of India's digital-payments ecosystem.

Under RBI norms effective April 2026, banks may accept silver ornaments and coins as collateral for loans, expanding beyond the earlier gold-only framework for secured lending.

The RBI's revamped digital-payment security framework was finalised for rollout from 1 April 2026, mandating stronger risk-based authentication and additional verification for high-risk transactions.

The RBI observed Financial Literacy Week 2026 in March with the theme 'KYC - Your first step to safe banking', aimed at strengthening awareness of safe banking and KYC practices.

The government launched a Central Bank Digital Currency (CBDC)-based Public Distribution System in Gujarat to enable secure, transparent and faster food-grain distribution to beneficiaries.

The RBI introduced measures for cooperative banks - higher housing-loan limits, expanded branch openings, improved deposit security and priority-sector lending support via NCDC - under the 'Sahakar Sarthi' push.

Effective 15 December, the RBI approved amalgamating four co-operative banks into two - Amod Nagric into Bhuj Mercantile Co-op Bank, and Amarnath into Kalupur Commercial Co-op Bank.

The RBI announced relief for exporters facing global headwinds, including easing debt-repayment burdens, extending credit periods and lengthening the timeframe for realising and repatriating export proceeds.

REC Limited and Power Finance Corporation approved a merger scheme effective 28 June 2026 with an 88:100 share exchange ratio, creating a power-sector financing giant with a combined loan book over Rs 11 lakh crore (subject to regulatory approvals).

India's Index of Industrial Production expanded 4.9% year-on-year in April 2026 (released in June), above the 3.9% expected, with manufacturing rising a sharper 6.2%.

The Corporate Affairs Ministry amended Schedule VII of the Companies Act to make subscription to Zero Coupon Zero Principal Instruments issued by NPOs on a social stock exchange an eligible CSR activity (up to 10% of annual CSR spend).

Medical device maker Poly Medicure Ltd signed a definitive agreement to fully acquire Italy-based Citieffe Group at an enterprise value of Rs 324 crore (EUR 31 million), expanding its global footprint.

The boards of Axis Max Life Insurance and Max Financial Services granted in-principle approval for their amalgamation, subject to regulatory and shareholder clearances.

Fintech major BillDesk agreed to buy Worldline India's payments arm in a deal pegged at $100-150 million, strengthening its merchant aggregation and omnichannel capabilities.

Japan's Sumitomo Mitsui Banking Corporation (SMBC) agreed to acquire a 20% stake in Yes Bank for about $1.6 billion, a major foreign investment in the private lender.

IIP grew 5.1% in May 2026, a five-month high, led by electricity and gas (+9.9%) and manufacturing (+5.5%), while mining contracted 1.6%.

India hosted the Bharat Steel Summit in New Delhi to chart the domestic steel sector's growth, decarbonisation and self-reliance goals.

India's industrial production grew 4.9% in April 2026, the first data under a revamped IIP series with the base year revised from 2011-12 to 2022-23. Manufacturing rose 6.2% and capital goods 16.0%.

The Index of Industrial Production grew 4.8% year-on-year in January 2026 (released 2 March), with manufacturing also up 4.8% and electricity the fastest-growing sub-index.

Unveiled at BIRAC's 14th Foundation Day, the report said India's bioeconomy reached a record US$195.3 billion in 2025, nearly 5% of GDP, driven by biopharma, bio-industrial and bio-agriculture sectors.

In its March 2026 disclosures, Reliance Industries announced the amalgamation of IndiaCast Media Distribution with JioStar India, part of continued consolidation in its media business.

In the January-March 2026 quarter, India recorded roughly 710 deals worth about US$20 billion - one of the highest activity levels on record - led by mid-market and outbound transactions.

The Ministry of Power proposed mandatory Time-of-Day tariffs for commercial/industrial consumers from 1 April 2027, a net-metering charge (exempt for solar PV up to 5 kW) and automatic review of abnormal bills within 30 days.

The Ministry of Mines released draft rules under the MMDR Act, 1957 providing for registration of electronic Mineral Exchanges (valid 25 years) for minerals other than coal, lignite and atomic minerals, regulated by the Indian Bureau of Mines.

At the AI Impact Summit, Reliance Industries pledged US$110 billion over seven years toward AI-focused infrastructure - the single largest corporate AI commitment announced during the summit.

The RBI released draft directions to permit commercial banks to lend to Real Estate Investment Trusts (previously not allowed), subject to safeguards, and to harmonise InvIT lending norms.

Adani Enterprises completed the acquisition of a 72.8% stake in Flight Simulation Technique Centre Pvt Ltd, strengthening its aviation-training footprint.

India recorded roughly 710 deals worth about US$20 billion in Q1 2026 - one of the highest activity levels on record - with a record 56 outbound deals worth ~US$3.9 billion.

The Index of Industrial Production for November 2025 grew 6.7% (manufacturing 8.0%, mining 5.4%), and IIP for December 2025 later showed 7.8% growth, signalling robust factory momentum.

Year-end reviews reported India's technology-sector M&A reaching a three-year high at an estimated US$26-29 billion, up nearly 30% from about US$20 billion in 2024.

JSW Paints acquired a majority 60.76% stake in Akzo Nobel India for a maximum consideration of Rs 8,986 crore - a major consolidation in the paints sector.

Bajaj Finserv acquired Allianz SE's 26% stake in their insurance joint ventures for Rs 24,180 crore, raising Bajaj's ownership to 100% and ending a 24-year partnership.

UAE-based Emirates NBD's acquisition of a controlling 60% stake in RBL Bank for around Rs 26,850 crore was a defining 2025 deal - the largest cross-border investment in an Indian private bank.

The Index of Industrial Production grew just 0.4% year-on-year in October 2025, down from 4.0% in September, with mining and electricity contracting amid extended rains and festival holidays.

India's foreign exchange reserves crossed $700 billion in June 2026, reaching about $702.78 billion as of 27 June, recovering from a May dip as the RBI defended a weak rupee (around 94/USD in mid-June).

At its June 2026 meeting, the RBI Monetary Policy Committee under Governor Sanjay Malhotra unanimously kept the repo rate unchanged at 5.25% with a neutral stance; the SDF stayed at 5% and MSF/Bank Rate at 5.5%.

India's foreign exchange reserves fell to a one-year low of about $681 billion in the week ended 22 May 2026 as the RBI sold dollars to defend the rupee amid the oil-price shock and FPI outflows.

The RBI Central Board approved a record surplus transfer of Rs 2,86,588 crore (~Rs 2.87 lakh crore) to the Central Government for FY26 as its balance sheet expanded over 20%; the Contingent Risk Buffer allocation more than doubled.

At its first bi-monthly policy of FY 2026-27, the RBI Monetary Policy Committee under Governor Sanjay Malhotra unanimously held the repo rate at 5.25% with a neutral stance; SDF at 5.00%, MSF and Bank Rate at 5.50%.

India's foreign exchange reserves declined by roughly US$30.5 billion during March 2026 amid RBI intervention to curb rupee volatility and a ~4% rupee depreciation; end-March reserves stood near US$688 billion.

In its first policy of 2026, the RBI's Monetary Policy Committee kept the repo rate unchanged at 5.25%, following a 25 bps cut in December 2025 (cumulative 125 bps in the cycle). SDF stayed at 5.00%, MSF and Bank Rate at 5.50%.

The MPC retained a neutral policy stance by a 5:1 majority (one member voted for an accommodative stance), supported by resilient growth and benign inflation.

India's foreign exchange reserves surged past US$700 billion in mid-January and reached about US$709 billion (week ended 23 January), a record high covering more than 11 months of imports.

The RBI conducted a USD/INR Buy/Sell Swap auction of US$10 billion with a three-year tenor to reinforce durable rupee liquidity amid seasonal cash outflows.

The RBI Monetary Policy Committee, under Governor Sanjay Malhotra, unanimously cut the repo rate by 25 bps to 5.25%, ending a two-meeting pause while retaining a neutral stance.

At its 19 June 2026 Board meeting, SEBI approved reforms across buy-backs, AIFs, mutual funds and debt markets, reintroducing open-market buy-backs through stock exchanges from 1 August 2026 and aligning securitisation governance with the RBI framework.

Under the fully implemented 50:50 margin rule effective June 2026, at least 50% of the margin requirement for Futures & Options trading must be maintained in cash or cash-equivalent instruments.

The RBI expanded the FAR to include all new 15-, 30- and 40-year government securities, removed investment and concentration limits for FPIs under the General Route, and raised equity caps for NRIs and OCIs.

SEBI proposed allowing AMCs to accept consolidated payments via salary deduction, allotment of MF units in lieu of cash trail commission, and investor donations to NGOs, with KYC safeguards.

The RBI allowed non-bank entities - NBFCs, corporates, housing finance companies and all-India financial institutions - to participate in the term money market (14 days to one year), to deepen liquidity and improve policy transmission.

SEBI reduced the minimum investment in a social impact fund from Rs 2,00,000 to Rs 1,000 per individual investor and introduced a provision to tag an AIF as an 'inoperative fund'.

Overseas equity investments by Indian companies rose about 27% (reported in April 2026) to roughly Rs 12,100 crore, reflecting strong appetite for global expansion.

French liquor major Pernod Ricard reportedly began exploring an IPO of its India arm with advisers, reflecting continued interest in listing Indian units of multinational firms.

Travel major MakeMyTrip named Axis Capital, Morgan Stanley and JP Morgan as advisers for its planned IPO, signalling a domestic listing push.

Gaming firm PlaySimple filed its draft red herring prospectus for a public issue comprising solely an Offer for Sale of Rs 3,150 crore, positioning it to become India's second listed gaming company after Nazara.

SEBI approved recommendations bringing its Chairman and Whole-Time Members within the definition of 'insiders', requiring freezing of investments on joining and capping new investment via a single intermediary at 25% of the financial portfolio.

AI and analytics firm Fractal Analytics opened its Rs 2,833.9 crore IPO in the same window, reflecting strong investor appetite for AI-driven enterprises.

MSME-focused lender Aye Finance launched its Rs 1,010 crore IPO, open from 9-11 February, amid strong primary-market activity.

W Health Ventures announced an initial close of Rs 550 crore for a healthcare Fund II, and IIT Madras Research Park with Unicorn India Ventures launched a Rs 600 crore deeptech-focused fund.

Moody's projected a stable outlook for India's banking sector, supported by expected FY27 growth and low system-wide NPAs projected at 2-2.5%.

Following the Budget announcement, the RBI released a draft revised master direction enabling Total Return Swaps on corporate bonds and Credit Default Swaps, specifying eligible participants and prudential norms.

SEBI notified a sweeping overhaul of the 30-year-old mutual-fund framework (effective 1 April 2026), introducing a performance-linked base expense ratio, reduced brokerage caps, a 'Life Cycle Funds' category and a slimmer rulebook.

Indian equities hit fresh records in early January - the Sensex closed near 85,762 and the Nifty50 crossed 26,300, with Nifty touching an intraday record of about 26,373 on 5 January.

Foreign Direct Investment inflows into India reached about US$81 billion in 2025, roughly 13% higher year-on-year, reflecting sustained investor confidence.

India's total exports (merchandise plus services) rose 4.22% to about $860.09 billion in FY26, though imports grew faster, widening the overall trade deficit.

India's merchandise trade deficit widened to a record $28.4 billion in April 2026, with exports up 13.8% to $41.6 billion and imports up 10% to $71.9 billion, driven by a surge in oil, fuel and coal prices.

The Finance Ministry notified the FEMA (Non-debt Instruments) Second Amendment Rules, 2026, removing the 74% cap and allowing up to 100% foreign investment in insurance companies under the automatic route (LIC remains capped at 20%).

The RBI extended the enhanced 450-day export credit period for pre- and post-shipment finance until 30 June 2026, a facility introduced in November 2025 to help exporters amid West Asia disruptions.

The RBI approved UAE-based Emirates NBD to acquire up to a 74% stake in RBL Bank for around $3 billion - described as the largest foreign investment in an Indian bank.

India's exports for April 2026 were about $43.7 billion (up ~13.4%) and imports about $71.9 billion (up ~10.8%), leaving a trade deficit near $28.2 billion, with petroleum and telecom instruments leading exports.

The CBIC allowed eligible SEZ manufacturing units to sell goods in the Domestic Tariff Area at concessional customs duty for 2026-27, subject to a minimum 20% value addition and a 30% export-value cap.

DPIIT's Press Note No. 2 of 2026 removed the requirement of a beneficial owner being 'situated in' a land-border country, defining beneficial ownership per the PMLA (over 10% holding of shares, capital or profits).

Per RBI data, India's Current Account Deficit for Q3 FY26 (Oct-Dec 2025) widened to US$13.2 billion, about 1.3% of GDP, reflecting a larger merchandise trade gap.

DPIIT released the draft Bill for feedback; it gives electronic trade documents full legal validity equal to paper and provides for cross-border recognition and trust service providers.

The Government removed the 50% cap on remission rates (introduced in February 2026) under the RoDTEP scheme, restoring earlier rates to support exporters amid West Asia disruption.

India's cumulative total exports (goods + services) during April-January 2025-26 were estimated at US$720.76 billion, up 6.15% over the same period a year earlier.

Merchandise exports in January 2026 were US$36.56 billion and imports US$71.24 billion; combined (goods + services) total exports were US$80.45 billion (+13.17% YoY), with gold imports surging.

India's current account deficit narrowed to about 0.8% of GDP in the first half of 2025-26, aided by strong services exports and remittances.

Total exports (goods + services) for December 2025 were US$74.01 billion and total imports US$80.94 billion; the April-December merchandise trade deficit stood at US$248.32 billion.

India's merchandise trade deficit fell to US$24.53 billion in November 2025; total exports rose 15.52% to US$73.99 billion, led by engineering and electronic goods.

Total exports (merchandise + services) during April-November 2025 were about US$562.13 billion, up 5.43% year-on-year.

The World Bank's Global Economic Prospects projected global growth slowing to 2.5% in 2026, citing the Middle East conflict and energy price spikes, with South Asia moderating to 6.2% before recovering to 6.5% in 2027.

In its Global Economic Prospects report, the World Bank raised India's FY 2026-27 GDP forecast to 6.6%, keeping India the fastest-growing major economy, with growth seen rebounding to 7.2% in FY28.

The UN's World Economic Situation and Prospects mid-2026 update cut global GDP growth to 2.5%, while India remained the fastest-growing major economy, projected around 6.6% for 2026.

The World Bank raised India's FY 2026-27 growth forecast to 6.6%, citing strong domestic demand and keeping India the fastest-growing major economy.

The IMF's April WEO, titled 'Global Economy in the Shadow of War', projected India's real GDP growth at about 6.5%, keeping India the fastest-growing major economy while trimming the global outlook.

The World Bank noted India remained the fastest-growing major economy with FY26 growth around 7.6% and a current account deficit near 1% of GDP, while projecting FY27 growth at 6.6%.

The World Bank's January Global Economic Prospects pegged South Asia growth at 6.2% in 2026, while the UN's WESP 2026 projected India moderating to about 6.6% in 2026.

The IMF's January WEO Update projected India's growth at 6.3% for 2026 and 6.5% for 2027, retaining India as the fastest-growing major economy.

The FSR pegged FY26 growth at 7.8% (Q1) and 8.2% (Q2) and reported the gross NPA ratio of scheduled commercial banks at a multi-year low of 2.1%, while flagging risks from unsecured retail lending and stablecoins.

India's GDP grew a provisional 7.8% in Q4 FY26 (Jan-Mar 2026), supported by private consumption and fixed investment; full-year FY26 real GDP expanded about 7.7%, the sharpest growth since FY2022.

The RBI lowered its FY27 GDP growth forecast to 6.6% (from 6.9%) and raised its inflation forecast to 5.1% (from 4.6%), citing the West Asia conflict, higher energy prices and monsoon/El Nino uncertainty.

MoSPI launched a revamped IIP series updating the base year from 2011-12 to 2022-23, adding items such as rare earths, gas supply and aircraft parts to better reflect the modern economy.

In its April policy, the RBI projected India's real GDP growth for FY 2026-27 at 6.9% and CPI inflation at 4.6%, flagging global geopolitical risk from the West Asia conflict.

India's eight core infrastructure industries grew 2.3% in February 2026, slowing from an upwardly revised 4.7% in January; cement (+9.3%), steel (+7.2%) and fertilisers grew while crude oil and natural gas declined.

India's real GDP for Q3 FY26 (Oct-Dec 2025) was estimated at Rs 84.54 lakh crore, growing 7.8% year-on-year, with real GVA also up 7.8%; the full-year FY26 estimate stood at 7.6% under the new 2022-23 base series.

MoSPI released a revised GDP series shifting the base year from 2011-12 to 2022-23; under the new series FY26 GDP growth (second advance estimate) is 7.6% and Q3 (Oct-Dec 2025) grew 7.8%.

A new Consumer Price Index series adopting 2024 as its base year was released; CPI inflation for January 2026 stood at about 2.75% under the new base.

The NSO released the First Advance Estimates projecting India's real GDP growth at 7.4% for FY26 (up from 6.5% in FY25), led by financial and public services.

Alongside the rate cut, the RBI revised its FY26 real GDP growth projection upward to 7.3% (from 6.8%), citing strong momentum and record-low inflation.

India's real GDP grew 8.2% in Q2 (Jul-Sep) FY26, a six-quarter high, with manufacturing up 9.1% and the tertiary sector up 9.2%; H1 FY26 growth was 8.0%.

Retail (CPI) inflation rose to about 3.9% for May 2026 (released in June) from 3.5% in April - the highest in 16 months but below the RBI's 4% midpoint - with food inflation near 4.8% amid the West Asia conflict.

India's CPI inflation for May 2026 was a provisional 3.93%, the fifth straight monthly rise, with food inflation at 4.78%; the uptick was partly driven by four fuel price hikes in May, the first in four years.

Wholesale Price Index inflation hit a provisional 8.3% for April 2026, a multi-month high, driven mainly by higher prices of mineral oils, crude petroleum, natural gas and basic metals.

All-India CPI inflation for April 2026 was a provisional 3.48%, the fastest in a year but below market expectations, with rural inflation at 3.74% and urban at 3.16%.

The annual WPI-based inflation rate for February 2026 was 2.13% (provisional), with the WPI food index at 1.85%, released in mid-March.

The February 2026 CPI data (released in March) showed retail inflation at 3.21% with food inflation at 3.47%, comfortably within the RBI's tolerance band.

Retail (CPI) inflation for December 2025 rose to 1.33% year-on-year (from 0.7% in November) as food deflation narrowed; core inflation climbed to a 28-month high of 4.8%. This was the last release on the 2012=100 base.

Average retail (CPI) inflation fell to about 1.7% for April-December 2025-26 (from 4.6% in 2024-25), reflecting easing food prices and a favourable base.

Wholesale Price Index inflation for December 2025 was 0.83% (provisional) year-on-year, with the WPI food index rising to 0.00% from -2.60% in November.

Wholesale Price Index inflation remained negative (around -1.2% for the October print), reflecting lower prices of food, crude petroleum, natural gas and mineral oils.

CPI inflation for November 2025 was 0.71% (provisional), up from October's record low of ~0.25%, with food inflation still negative at -3.91%.

The RBI invited comments on draft norms barring lenders from disabling a borrower's mobile device, requiring advance notice before in-person visits, and mandating IIBF certification for recovery agents.

The RBI imposed monetary penalties on Union Bank of India, Central Bank of India, Bank of India and fintech firm Pine Labs for lapses in crediting customer accounts, priority-sector lending and KYC norms.

From 1 April 2026, the RBI made two-factor authentication (SMS OTP or biometric verification) compulsory for all digital payment transactions, strengthening payment security.

From 1 April 2026, the RBI removed all foreclosure and prepayment penalties on floating-rate loans to individual borrowers, a major consumer-friendly reform.

The RBI proposed compensating customers for small-value fraudulent electronic transactions - 85% of net loss or Rs 25,000 (whichever lower), once per lifetime - with banks paying within five days and bearing the burden of proof.

The RBI informed regulated entities of Financial Action Task Force (FATF) updates concerning jurisdictions with strategic deficiencies in anti-money-laundering and counter-terror-financing frameworks.

Gross GST collection for May 2026 stood at Rs 1,94,184 crore, a 3.2% year-on-year rise, moderating from the record Rs 2,42,702 crore in April 2026.

Gross GST revenue for April 2026 rose 8.7% year-on-year to Rs 2,42,702 crore - the highest-ever monthly collection - with GST on imports up 25.8%.

Net GST revenue in March 2026 stood at about Rs 1.78 lakh crore, up 8.2% year-on-year; cumulative net GST collections for FY26 reached about Rs 19.35 lakh crore.

Securities Transaction Tax rates on Futures & Options were increased, and a tax holiday until 2047 was announced for foreign companies providing global cloud services using Indian data centres.

Personal income-tax slabs stayed unchanged under both regimes; income up to Rs 12 lakh (Rs 12.75 lakh for salaried, with Rs 75,000 standard deduction) remains effectively tax-free in the new regime.

Gross GST collection for December 2025 was Rs 1.75 lakh crore, up 6.1% year-on-year, following the two-tier 'GST 2.0' rate revamp effective 22 September 2025.

The Budget proposed reviving 200 legacy industrial clusters, setting up a 'High Level Committee on Banking for Viksit Bharat', and introducing derivatives on corporate bonds.

The Survey noted India's lowest average CPI inflation (1.7%) for Apr-Dec 2025 since the series began, forex reserves of about US$701.4 billion (~11 months of import cover), and India as the top remittance recipient (US$135.4 billion in FY25).

The Budget announced seven new high-speed rail corridors connecting major cities and 20 new national waterways to be made operational over five years.

The Ministry of Railways received Rs 2,77,830 crore in capital allocation for FY27, a 10.25% increase and its highest ever.

The Ministry of Defence received the highest allocation at Rs 7,84,678 crore (about 15% of total central expenditure), with defence capital outlay at Rs 2,19,306 crore, 17.6% higher than the FY26 revised estimate.

Capex for FY27 was increased to Rs 12.2 lakh crore (from Rs 11.2 lakh crore) to sustain infrastructure-led growth; effective capex was projected at 4.4% of GDP.

The FY27 fiscal deficit is targeted at 4.3% of GDP (down from the 4.4% revised estimate for FY26), with the revenue deficit at 1.5% and nominal GDP growth assumed at 10%.

Finance Minister Nirmala Sitharaman presented the Union Budget for FY27, with total expenditure pegged at Rs 53,47,315 crore (up 7.7% over 2025-26 RE) and receipts other than borrowings at Rs 36,51,547 crore.

The Economic Survey was tabled by Finance Minister Nirmala Sitharaman, projecting real GDP growth of 6.8-7.2% for 2026-27 and about 7.4% for 2025-26, with inflation within the 4% (+/-2%) band.

The Economic Survey (tabled 29 January, core to the Budget session) projected real GDP growth of 7.4% and GVA growth of 7.3% for FY26, keeping India the fastest-growing major economy, with FY27 growth projected at 6.8-7.2%.

Adani Defence Systems and Technologies signed an MoU with Brazil's Embraer to develop a regional transport-aircraft ecosystem in India.

Marking ten years of Startup India, the government highlighted that recognised startups had created over 21 lakh direct jobs, underscoring the ecosystem's role in employment and innovation.

India was reaffirmed as the world's third-largest startup ecosystem, with over 2.09 lakh DPIIT-recognised startups by December 2025 - a landmark marked on National Startup Day.

The government's sale of its 60.72% stake in IDBI Bank advanced, with financial bids expected in January and the deal potentially exceeding Rs 1 lakh crore.

The Production Linked Incentive scheme attracted around Rs 2 lakh crore in investment and over Rs 17 lakh crore in production, as cited in the President's address.

The HSBC India Manufacturing PMI stood at 56.8 in January 2026, firmly above 50, with the composite reading around 58.4, indicating strong private-sector activity.

Gross Value Added is estimated to grow 7.3% in FY26, led by services (near 10%), with manufacturing and construction around 7% and agriculture at 3.1%.

The RBI conducted Open Market Operations to purchase government securities worth Rs 2 lakh crore in four tranches of Rs 50,000 crore each (including on 5, 12 and 22 January) to ensure durable banking-system liquidity.

The RBI directed all regulated entities (banks, NBFCs, fintechs, payment aggregators) to prioritise customer data protection in alignment with the Digital Personal Data Protection Act, 2023, with periodic board reviews.

The RBI mandated that all loan disbursals flow directly to the borrower's bank account, required a Key Fact Statement with APR disclosure, and prescribed a cooling-off period of at least three days.

DPIIT floated proposals to extend 'design' to virtual designs (GUIs, icons, typefaces) and to accede to the Riyadh Design Law Treaty and the Hague Agreement.

The government consolidated the year's reforms: 29 labour laws unified into four Labour Codes (~50 crore workers), Next-Gen GST 2.0 (two slabs of 5% and 18%), and the Rs 25,060-crore Export Promotion Mission.