Topic
Latest UPSC current affairs on Economy for Prelims and Mains.

The Taxation and Other Laws (Amendment) Bill, 2026 is an effort towards bringing a contemporary Indian taxation system which can help improve tax certainty, bring in foreign investments, improve digital payment systems and infrastructure and restore tax benefits on REITs and InvITs, besides substituting the Income-tax (Amendment) Ordinance, 2026.

The MSME Development (Amendment) Bill, 2026 encourages digitisation and invoice financing through TReDS, as part of an effort to enhance MSME liquidity and formalisation. It aims to facilitate quick payments and develop the digital economy. It will be successful based on the following factors: greater use of TReDS, implementation, digital literacy, and financial inclusion of MSMEs.

Industrial production in India increased by 7.3% in June 2026, marking the highest growth rate since August 2024. It is necessary to maintain this trend while managing the concerns surrounding the monsoon, inflation, geopolitics, and logistics.

The rupee is undervalued, making India competitive in exports and manufacturing. Yet, import prices, inflation, and other risks pose difficulties. This calls for a stable currency exchange rate, increased exports, and structural reform.

India recorded an all-time high of US$863.1 billion for its exports in fiscal year 2025-26, owing to its robust performance in merchandise exports, service exports, FTAs, and digital trade facilitation. Even when faced with obstacles such as global slowdown, protectionism, and logistics costs, India will continue to grow through exports owing to its FTAs, manufacturing, infrastructure, and MSMEs.

Fiscal Health Index (FHI) 2026 of NITI Aayog is a rating tool for evaluating the fiscal performance of 28 States for FY 2023-24 based on four criteria โ quality of expenditure, revenue generation, fiscal prudence, and debt management. It helps to promote fiscal responsibility, sustainability of public finance, transparency, and cooperative federalism.
The RBI's Monetary Policy Committee held the repo rate at 5.25% with a unanimous 6-0 vote in June 2026 and retained the neutral stance. FY27 CPI inflation is projected at 5.1% and GDP growth at 6.6%. Complete UPSC analysis of the framework, transmission, the West Asia oil shock and the monsoon risk.
The US has imposed a 10% Section 301 tariff on Indian goods from 24 July 2026 under a forced-labour action covering 60 economies. India escaped the 12.5% slab after amending its Foreign Trade Policy. Complete UPSC analysis of the legal basis, WTO implications and India's response.

The Investment Friendliness Index (IFI) by NITI Aayog is an index that measures the states and UTs on their investment-friendliness with 84 parameters across eight domains. It includes 28 states and 8 UTs and serves the purpose of promoting competitive and cooperative federalism, bringing about reforms, improving investment, and implementing the vision of Viksit Bharat @2047.

In India, the WPI inflation rate has shot up to 9.87% in June 2026 due to factors including a rise in prices of fuels, manufacturing costs, and a weak monsoon causing food inflation. This particular event has brought out the importance of implementing supply-side measures, climate-friendly farming techniques, fuel taxation policy, energy security, and macroeconomic measures.

The futures and options market in India has shown remarkable growth to become one of the biggest derivative markets in the world. But with increasing participation from retail customers, especially new and inexperienced traders, there have been considerable financial losses, indebtedness, and suicide cases reported.

The Index of Core Industries (ICI) based on the base year 2022-23 will be rolled out by the Office of Economic Adviser (DPIIT) on July 20, 2026, in place of the 2011-12 series. The Index of Core Industries will include Iron Ore as the ninth core industry through this revision.

The retail inflation in India for June 2026 increased to 4.4%, which is above the 4% target of the Reserve Bank of India, owing to elevated food and fuel prices along with erratic rainfall and geopolitical unrest in West Asia. Although the rate of inflation remains in the 2โ6% range, coordination between fiscal and monetary policies is crucial.

The Academic Bank of Credits (ABC) is a UGC-regulated digital repository that enables students to store, transfer, and redeem academic credits across recognised institutions. APAAR provides a lifelong 12-digit digital student ID linked to Aadhaar, DigiLocker, and ABC. Introduced under NEP 2020, these reforms promote flexible learning, student mobility, secure digital records, and seamless credit recognition while supporting lifelong education.

The Index of Services Production (ISP), which is set to be launched in July 2026, is the first monthly indicator in India that measures the production in the formal services sector. ISP is an addition to the existing index, IIP, but excludes informal sector services and some government services.